05 October 2010
The Social Security Minister has approved the Employment Forum’s latest recommendation for a 2% increase in the minimum wage, effective from 1 April 2011.
Social Security Minister, Deputy Ian Gorst said “I am pleased to accept the forum’s proposed minimum wage of £6.32 per hour. In the current weak labour market and with increasing unemployment, I share the forum’s concerns about protecting jobs and guarding against further redundancies. I believe that a 2% increase provides a fair balance, in view of low average earnings growth in 2010.”
The Minister also approved the forum’s recommendation for an equivalent 2% increase in the trainee rate and the maximum amounts that may be offset against the minimum wage, where an employer provides food and accommodation as part of the employment package.
The Minister agrees that a lower minimum wage rate for young people should not be introduced at this time; Deputy Gorst said “The forum did not find sufficient evidence that a lower rate for 16 to 18 year olds would increase employment opportunities for young people. I intend to direct the forum to examine the criteria that must be met to pay the trainee rate in next year’s minimum wage review.”
The Minister notes that a recommendation that will prevent employers from using tips to top up minimum wage pay, made by the forum last year, will also take effect from 1 April 2011.
Amended legislation to give effect to the forum recommendations will be presented to the States later this year.
Employment Forum's minimum wage recommendation (government and administration section)