Understanding Jersey's Minimum Wage

The minimum wage is seen by many as a critical aspect of any economy, ensuring employees receive a fair baseline level of income. 

In Jersey, the minimum wage has long been a topic of ongoing discussion and adjustment, reflecting the Island's commitment to balancing economic growth with social equality.

Here's an overview of Jersey's minimum wage and its implications.

Current minimum wage

As of 1 April 2025, Jersey's minimum wage was increased to £13.00 per hour which applies to all employees over the age of 16, regardless of their occupation, sector, or background.

The increase, from £11.64 per hour, represents a significant step towards aligning the minimum wage with the Island’s high cost of living.

However, it also represents a significant increase for business which needs to be carefully considered and managed, especially in an island economy where most organisations are small; according to the latest Labour Market statistics, at 31 December 2024 of 8,440 private sector undertakings in Jersey only 190 employ 50 or more people, with over 7,500 employing less than 10 people.  

Offset rates for accommodation and food

For employees who receive accommodation (or accommodation and food) as part of their employment package, specific offset rates apply:

•    Accommodation only: £146.02 per week

•    Accommodation and food: £194.60 per week

These offsets are intended to ensure employees are fairly compensated while recognising the value of these benefits.

Transition to a living wage

Jersey is on a path to transition from a minimum wage to a living wage.

By April 2026, the minimum wage is expected to be set at two-thirds of the 2024 median wage.

This shift aims to provide employees with an income that reflects the true cost of living on the Island.

Support for employers and employees

To ease the transition to a higher minimum wage, the Jersey government has introduced a £20 million support package to help businesses adapt, which includes:

•    A £6 million Productivity Support Scheme to boost efficiency;

•    £7 million investment in the visitor economy and hospitality industry;

•    £3 million for training initiatives; and

•    Additional support for the rural and marine economy.

Implications for Jersey's economy

The increased minimum wage is expected to have several positive effects:

•    Improved living standards for low-income employees;

•    Enhanced employee satisfaction and retention; which in a jurisdiction with minimal unemployment and restrictive housing and employment regulations may be considered beneficial to all industries;

•    A potential boost to the local economy as employees have more disposable income.

However, business, particularly small enterprises, may face challenges adjusting to higher labour costs.  

The Jersey government's support measures may mitigate these challenges and promote a sustainable transition.  However, anecdotal evidence indicates that some businesses, especially those outside of the Island’s financial services sector, may be reducing their investment in apprentice roles following the abolition of the trainee wage in 2023.  And with the Fiscal Policy Panel citing these latest changes as a factor which will cause ‘wage pressure across Jersey’s economy’ which ‘risks creating more inflationary pressure,’ their benefit to the Island as a whole is yet to be determined.


RSM Channel Islands offers a range of services which can help both small and larger businesses with payroll and business support.  Please get in touch if you think we can help you.