CONSULTATION ON THE MINIMUM WAGE AND LIVING WAGE

St Helena Government is consulting on an increase to the Minimum Wage from 1 April 2018.

Minimum Wage

The Minimum Wage per hour is currently Pound 2.95 (for persons over 18) and Pound 2.00 (for persons aged 16 or 17).

The Minimum Wage increased in August 2017, the first time in over two years. During the consultation for the August increase, businesses told SHG that rather than wait two years and propose a large increase, it was better for SHG to propose a smaller increase to the Minimum Wage regularly on 1 April of each year. SHG is therefore proposing an increase on this basis.

There are a number of upward pressures on the Minimum Wage. Since the Minimum Wage was recommended to be changed in 2017:

Prices have inflated by 3.3%

The Income Related Benefit (IRB) has increased by Pound 0.10 since the previous Minimum Wage update � wages must increase more than Benefits to maintain the same incentive to work.

SHG is consulting on two options for a change to the Minimum Wage from 1 April 2018:

1. An increase of 10p (3.3%) to Pound 3.05 for persons over 18

This is a 0% real increase in the Minimum Wage as the increase is in line with inflation.

The Minimum Wage for persons aged 16 or 17 would also increase by 10p to Pound 2.10.

2. An increase of 15p (5%) to Pound 3.10 for persons over 18

This is a 1.6% real increase in the Minimum Wage, after inflation is taken into account.

The Minimum Wage for persons aged 16 or 17 would also increase by 15p to Pound 2.15.

Source: St Helena Government

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