The minimum wage for 2021 has been approved by the States of Guernsey and will be increased in line with inflation, marking a 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 . 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 2021 will become effective as of 1 January 2021 and employers are minded to begin making changes to their payroll systems as soon as possible in preparation for the forthcoming changes.
|Adult (18 years and over) minimum wage rate per hour||£8.50||£8.70|
|Young (16 and 17 years old) person’s minimum wage rate per hour||£8.05||£8.25|
|Maximum weekly offset for accommodation only||£82.00||£84.00|
|Maximum weekly offset for accommodation & food||£114.00||£117.00|
By comparison, the Jersey minimum wage rate (16 years and over) stands at £8.32 per hour and the trainee rates are £6.24 per hour in the first year of training and £7.28 per hour in the second year. The Jersey rates come into force in April each year following a review and public consultation undertaken by the Jersey Employment Forum who make recommendations to the government typically released in September and October each year. The rates for 2021 are yet to be determined following the recommended rate of £8.66 per hour not being approved due to the current economic circumstances.