2 June 2023
On 1 July 2023, the Minimum Wage will increase. It will rise from £3.37 per hour to £3.65 per hour for an adult aged 18 and above, and from £2.42 per hour to £2.70 per hour for those aged 16 and 17 years old.
This increase is in line with the Minimum Wage Policy of 2021. This policy sets out the principles for establishing a longer-term path to a more ambitious Minimum Wage, benefitting workers and providing adequate time for businesses to plan and adapt. The Minimum Wage Policy is available on the SHG website at www.sainthelena.gov.sh/government/public-information/.
The proposed increases in the Minimum Wage between 2022 and 2025 are detailed below.
|FY||Proposed Hourly Increase||Hourly Minimum Wage (18+)||Hourly Minimum Wage (16-17)|
The above schedule for increases was informed by the Minimum Income Standard (MIS) work of 2020. The MIS is the income level needed for a minimum socially acceptable standard of living that provides more than what is just needed for survival. It supports social participation and recognises that choice is important, but also that choice cannot be unlimited.
This identified a MIS of £3.84 per hour per adult for a family with two adults and two children living in Government Landlord Housing and running an old car. It also identified rates of up to £4.99 per hour per adult, for single adult and two adult families with a mortgage.
Although a target Minimum Wage level and timetable were published in 2021, when determining whether to increase the Minimum Wage, consideration is also given to the cost of living pressures on both employees and employers. The Minimum Wage Policy recognises that there is a limit to the size of increases that businesses can absorb in a single year, whilst at the same time establishing a clear pathway for raising the minimum income level in St Helena. The target Minimum Wage level for 2024/25 was therefore set at £4.00 per hour. This will be reviewed by SHG later this year.
The changes being introduced in July are the latest in a long line of increases. Overall, the Minimum Wage has increased by 58.6% since it was introduced in 2013.
|Financial Year||Minimum Wage Rate||% Increase in Minimum Wage||Annual Inflation|
In total, the new 2023-24 Minimum Wage is equivalent to an increase of £546.00 per year when compared to the 2022/23 Minimum Wage for someone working a full-time, 37.5 hour week.
|Financial Year||Hourly wage||Weekly 37.5 Hours||Monthly||Annual Before Tax||Annual After Tax|
Employers are legally required to pay at least the minimum hourly rate of £3.65 per hour for an adult aged 18 years and over, and £2.70 per hour for someone aged 16 or 17 years old. It is the responsibility of all employers to ensure they are compliant with the provisions of the changes when they come into effect.
#StHelena #MinimumWage #AltogetherWealthier