On July 1, 2024, the minimum wage will increase in accordance with the Minimum Wage Policy of 2021. For adults aged 18 and above, the hourly rate will rise from £3.65 to £4.00, while for those aged 16 and 17, it will increase from £2.70 to £3.05.
The policy outlines a long-term strategy aimed at enhancing workers' wages while allowing businesses time to adjust. Details of this policy can be found on the SHG website at www.sainthelena.gov.sh/government/public-information/.
The proposed increases for the minimum wage between 2022 and 2025 are as follows:
- For fiscal year 2022/23: an increase of £0.12 resulting in a minimum wage of £3.37 for adults and £2.42 for younger workers.
- For fiscal year 2023/24: an increase of £0.28 leading to a minimum wage of £3.65 for adults and £2.70 for younger workers.
- For fiscal year 2024/25: an increase of £0.35 resulting in a minimum wage of £4.00 for adults and £3.05 for younger workers.
These adjustments were informed by the Minimum Income Standard (MIS) work conducted in 2020, which determined income levels necessary for a socially acceptable standard of living.
In determining these increases, consideration was given to cost-of-living pressures faced by both employees and employers. The policy acknowledges limits on how much businesses can absorb annually but aims to establish a clear path toward raising income levels in St Helena.
Since its introduction in 2013, the minimum wage has increased by approximately 73.9%. The new rates equate to an annual before-tax salary of £7,800 based on a full-time workweek of 37.5 hours.
Employers must comply with these changes when they take effect, ensuring payment meets or exceeds the set rates: at least £4.00 per hour for adults aged 18 and over, and at least £3.05 per hour for those aged between 16 and 17 years old.
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