The minimum wage for 2022 has been approved by the States of Guernsey and will be increase by 4%, marking another departure from the five-year plan to make Guernsey’s minimum wage equal to 60% of median earnings by 2023.
As many of the businesses who typically pay at the minimum wage rate, are based in sectors which have been hardest hit by the effects of the pandemic, the Committee for Employment and Social Security have revised the plans to ensure the rates remain proportionate and appropriate given the circumstances and impact of the pandemic.
The plan for the minimum wage to reach 60% of median earnings is set to resume next year for the target to be achieved by 2024.
The minimum wage rates for 2022 are set to increase by 35 pence to £9.05 for adults and will become effective as of 1 January 2022. Employers are minded to begin making changes to their payroll systems as soon as possible in preparation for the forthcoming changes.
| 2021 | 2022 | |
| Adult (18 yrs and over) minimum wage rate per hour | £8.70 | £9.05 |
| Young (16 and 17 years old) person’s minimum wage rate per hour | £8.25 | £8.60 |
| Maximum weekly offset for accommodation only | £84.00 | £87.00 |
| Maximum weekly offset for accommodation & food | £117.00 | £122.00 |
Should you have a pan island business and to compare the minimum wage rates in Guernsey and Jersey, please click here.
Contribution Rates
In October 2021 the Revenue Service announced that the percentage contribution rate for employers and employees is to increase in increments of 0.1% each year over 10 years, as approved by the States of Deliberation on 13 October 2021. The article can be found in Billet D’Etat XX, Article 11 on the States of Guernsey website.
From 1st January 2022, the percentage rates will increase to 6.8% for employees and 6.7% for employers (both 6.6% in 2021).
2021 rates and levels are shown in brackets.
| Percentage Rates of Contribution | Employer (%) | Employee (%) | ||
| 2022 | 2021 | 2022 | 2021 | |
| Full (blue) | 6.7 | (6.6) | 6.8 | (6.6) |
| Employer Only (orange) | 6.7 | (6.6) | Nil | (Nil) |
| Earnings Levels | Weekly (£) | Monthly (£) | ||
| Lower Earnings Limit | 152 | (148) | 658.67 | (641.33) |
| Upper Earnings Limit (employer) | 3,027 | (2,955) | 13,117 | (12,805) |
| Upper Earnings Limit (employee) | 3,027 | (2,955) | 13,117 | (12,805) |