The Employment Forum has recommended a significant rise in Jersey's minimum wage.
The forum has recommended a 6.9% rise staggered over two increments. This will move the minimum wage towards the political target of 45% of mean weekly earnings by 2020 – if the recommendation is accepted by the Social Security Minister, the rate will be 43.4% of mean weekly earnings by October 2019.
Laura Shirreffs, an associate in Ogier's Jersey employment law team, said that the recommendation, which would be worth £1,082 per year to a worker on the minimum wage, was not surprising, given the economic conditions, the response to the previous increase and the political commitment.
"Whilst the rise is the highest proposed in ten years, the Forum has reported that it comes against a backdrop of record employment and other positive economic evidence" she said.
"Although the forum has proposed a rise well in excess of inflation – and some businesses will find this increase challenging – the target of 45% of mean weekly earnings has been a public political commitment since March, accelerating the timetable set out in 2010."