The minimum wage in Guernsey is set to rise to £7.75 an hour from the start of 2018, but the politicians who set the rate warn it needs to increase much more in the next two years.
The States backed the recommendation of the Employment and Social Security Committee who wanted the adult rate to increase by 55p from its current £7.20, and for the young person’s rate for 16 and 17 year olds to rise by 55p to £7.05 an hour.
But in a stark warning, the committee says the island needs to keep track with the UK’s plans for increases to the National Living Wage if it’s to remain competition.
Deputy Michelle Le Clerc, the president of the Employment and Social Security Committee, warned: “The Committee considers the UK Government’s aspiration to move to the National Living Wage rate of £9.00 per hour by 2020 needs to be borne in mind when setting the adult rate for 2018. It believes that if Guernsey does not keep pace with the UK rate, this could have serious implications for the Island’s competitiveness and reputation.”
The revised rates take effect from 1 January 2018.
