Minimum Wage 2008
The Social Security Minister has considered and approved the Employment Forum’s latest recommendation for the minimum wage rate of £5.80, which would be implemented on 1 April 2008.
The Employment Forum carried out a review of the minimum wage in October 2006
which, recommended that the minimum wage should be increased by a formula in future to allow businesses six months notice of the new rates.
On this occasion, that formula increased the minimum wage by 7.4 per cent - equivalent to the increase in the overall average weekly earnings, as provided by the June 2007 average earnings statistics.
The purpose of the Forum’s latest recommendation is to seek the Social Security Minister’s approval of the minimum wage, trainee rate and offsets resulting from that formula.
Social Security Minister, Senator Paul Routier, said "I am pleased to announce that I have accepted the Forum’s recommendation of a £5.80 minimum wage as sensible and appropriate for the local economy. Preparations are now underway to amend the relevant legislation, some of which will require States approval."
The Forum has recommended the following new rates to apply from 1st April 2008. Rates effective since 1st April 2007 are shown in brackets:
Minimum Wage £5.80 (£5.40)
Trainee Rate £4.35 (£4.05)
Accommodation offset £63.47 (£59.10)
Accommodation and food offset £84.63 (£78.80)