Plans to match youth and adult wages scrapped

A plan to increase Guernsey's youth minimum wage in line with the adult rate has been scrapped after public consultation.

The Committee for Employment and Social Security wanted to bring the rate for workers aged 16 or 17 years old in line with adults, which it plans to increase to £13.10 from October.

Following a consultation on the plans, the committee has decided to amend its proposal and keep the young person's rate at 90% of the adult pay, meaning adults would earn £13.10 and young people would earn £11.80.

The committee said people opposing the plans "generally argued that younger workers often require additional supervision, training and support when entering the workforce".

The committee said people responding to the proposal felt having different rates for young people and adults helped give a "financial incentive to recruit and train younger workers".

"The consultation responses demonstrate a clear divergence of views on this proposal," it said.

"The strongest opposition came from the Committee for Economic Development and employer representative organisations, which expressed concern that removing the differential could reduce employment opportunities for younger workers.

"Several respondents expressed concern that equalisation could reduce employment opportunities for 16 and 17 year olds, particularly in sectors that traditionally provide entry-level roles.

"In particular, these respondents highlighted the important role that the differential may play in encouraging employers to recruit, train and provide work experience opportunities to young people entering the workforce."

The committee said it carefully considered the concerns and while it "continues to support the principle of equalisation" it recognised there was a potential risk if employers responded by reducing the recruitment of younger workers.

The proposals are due to be discussed at a States meeting in July and if passed will come into effect from 1 October.

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