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2025 will be a landmark year for Jersey as we begin the transition towards a living wage.
This is one of the Government’s 13 Common Strategic Policy priorities, and will help to deliver affordable living while building our economy.
The minimum wage will rise to £13 an hour from 1 April in the first step towards a Jersey living wage, ahead of April 2026 when it will be set at two-thirds of the 2024 median wage.
The Government is investing £20 million over the next two years to help employers with the transition and support workers on lower incomes.
“The transition towards a living wage is a vital priority for this Government as we work to help Islanders with the cost of living and build a fairer society for all,” said the Minister for Social Security, Deputy Lyndsay Feltham. “This is a measure that directly supports members of our community who may be struggling to make ends meet.”
What is a living wage?
A living wage is not just a different name for a minimum wage. A living wage takes account of the cost of living as well as considering the state of the economy as a whole.
Living wage organisations around the world research the basic costs of living – such as rent, food, heating and electricity – for different household types such as single working-age person, a couple with two school age children, etc
No such study currently exists for Jersey. The local charity (Caritas Jersey) that provides accreditation to local living Wage employers uses the UK Living Wage for London with a 2 per cent uplift.
The Government has committed £200,000 to undertake a study to calculate minimum weekly household budgets for selected household types. This work can be used to inform discussions on living wage rates in future years
What is happening in 2026
In the meantime, the Government has committed to implementing a decision made by the States Assembly in 2021 to raise the minimum wage to two-thirds of the median wage.
The median is the midpoint in the range of wages, where half of all workers earn more, and half earn less.
From April 2026 the minimum wage will be set at two-thirds of the median wage for 2024.
Helping employers
The Government is investing £20 million over the next two years on a package of measures to help employers manage the transition towards a living wage.
This includes, per year:
- £2.3 million of grants to help employers invest in boosting their productivity
- £2 million of grants to help employers invest in developing the skills of their workforce, including apprentices
- A £1.1 million top-up to existing support schemes for the rural and marine economy (farming and fishing)
- An additional £1m of productivity grants ring-fenced for the visitor economy
- A £300,000 grant to Jersey Business to support the delivery of the productivity, skills and visitor economy development grants
- A £2 million marketing grant for Visit Jersey to boost tourism
- A £1 million grant for Ports of Jersey to improve the Island’s connectivity by developing new routes
The productivity, skills and visitor economy development grants will be launched in March via a new Jersey Business portal, and employers are being encouraged to use the time before then to review the criteria and prepare their applications.
These schemes will provide grants of up to £75,000 for businesses to invest in boosting their productivity (by investing in new technology, for instance) or develop the skills of their employees through training.
Productivity improvements – more output per worker – will help employers afford the transition towards a living wage.
These grants will provide up to 50% of the funding for a project. Businesses must match the funding provided by the Government and cover at least 50% themselves. Further information can be found here: Better Business Support Package: Employers urged to prepare.
“We’ve designed a package of support we believe will help employers to manage the transition towards a living wage and improve their own productivity at the same time,” said the Minister for Sustainable Economic Development, Deputy Kirsten Morel. “This will help the Island move towards a more resilient economy, and I urge businesses to look at the details of these schemes and come forward with applications once they are open.”
There are additional grants for the visitor economy and rural and marine sector because these are expected to be most heavily impacted by the transition towards a living wage.
In 2022, 2% of Island workers were being paid at the minimum wage and another 2% close to the minimum wage. These workers were concentrated in the hospitality and agriculture sectors.
Help for employees
The Government is spending up to £600,000 over the next two years in additional support for lower income workers who do not qualify for Income Support.
People who have lived in Jersey for less than five years and who earned £7,000 or less in the period July – September 2024 qualified for a £250 payment.
The deadline for applications for 2024 has now closed but a similar scheme will run later this year.
Lower income earners who have lived in Jersey for five years or more are eligible for Income Support can apply here: https://www.gov.je/Benefits/IncomeSupport/Pages/About.aspx