Insights from our Interim President, Eliot Lincoln, September 2026

Fair Pay, Strong Businesses and Economic Reality

The debate surrounding Jersey's minimum wage has become increasingly polarised. On one side are those who argue that any questioning of recent increases is an attack on workers. On the other are those who believe the current system is creating unintended economic consequences that can no longer be ignored.

In truth, most businesses sit somewhere in the middle.

The Jersey Chamber of Commerce firmly supports the principle that people should be paid fairly for the work they do. Good employers recognise that their people are their greatest asset, and no business succeeds in the long term by underpaying its workforce.

However, good intentions alone are not enough. Public policy must ultimately be judged on outcomes as well as aspirations, and it is entirely reasonable to ask whether Jersey's current minimum wage model is delivering the best results for employees, businesses and the wider economy.

Since 2020, Jersey's minimum wage has increased from £8.32 per hour to £13.59 per hour, an increase of just over 63 per cent as is widely regarded as one of the highest statutory minimum wage rates in Europe. The Government has stated that this achieves its policy objective of moving the minimum wage to two-thirds of median earnings. 

What is often missed in the debate is that minimum wage policy does not affect all sectors equally.

Many professional services firms, financial services businesses and specialist employers have few, if any, employees paid at or near the minimum wage. For these sectors, the impact is relatively limited.

For labour-intensive sectors such as tourism, hospitality, retail, agriculture and parts of the care sector, the impact is significantly greater. In these industries, labour costs represent a major proportion of turnover and operating expenditure. Even comparatively small changes in pay rates can have a substantial effect on business viability.

Businesses in these sectors are often facing rising costs from multiple directions simultaneously. Energy costs, freight charges, rents, rates, insurance, regulatory requirements and supply chain pressures continue to increase. For businesses that deal in physical products, such as food, retail goods or agricultural produce, many costs are imported and largely outside their control.

The reality is that businesses rarely absorb these costs indefinitely. They typically respond by increasing prices, reducing margins, improving productivity or reducing workforce costs. In practice, this often means fewer vacancies, fewer hours, slower recruitment and delayed investment.

Many business owners report that recent years have seen precisely this effect.

One Chamber member recently described how substantial wage increases for employees had been funded largely through reductions in headcount rather than through business growth. Existing employees received welcome pay increases, but those remaining often found themselves working under greater pressure for longer periods. This experience is not unique and reflects a challenge reported across several sectors.

Importantly, this is not an argument for reducing wages.

Nor is Chamber advocating the complete abolition of a minimum wage. Minimum wage legislation exists to protect vulnerable workers and ensure basic standards of fairness in the labour market. Those protections remain important.

What Chamber is calling for is a more flexible and evidence-led approach.

In particular, we believe there is a strong case for introducing more differentiated entry-level and youth wage arrangements, similar to those used in other jurisdictions. Such measures could help young people gain their first experience of the workplace through part-time work, summer employment and entry-level roles while allowing employers to create opportunities that may otherwise not exist. Jersey already operates a trainee minimum wage for approved training programmes, recognising that some flexibility can be beneficial. 

There is also a case for reviewing the pace of future increases. Many businesses would welcome a period of stability that allows them to recover, invest and grow before further substantial rises are considered.

None of this should be controversial.

Deputy Gerald Voisin deserves credit for encouraging a serious discussion about the economic consequences of the current model. Whether people ultimately agree with his conclusions or not, leadership requires a willingness to address difficult issues rather than avoid them.

The real objective should not simply be higher wage rates. It should be rising living standards, sustainable employment, stronger productivity and thriving businesses that can continue to invest in their people.

Fair pay and economic growth are not opposing goals.

Jersey needs both, and the conversation now should be about how we achieve them together.