The Executive Council has approved a 50p per hour increase in the minimum wage, set to take effect on July 1, 2025. This decision was made during a meeting on March 11, 2025. For individuals over the age of 18, the minimum wage will rise from £4.00 to £4.50 per hour, marking a 12% annual increase. Meanwhile, for those aged 16 or 17 years, it will increase from £3.05 to £3.55 per hour, representing a 16% rise.
This adjustment aligns with the goal of establishing a more ambitious minimum wage that benefits workers while allowing businesses time to plan and adapt accordingly.
The principle guiding this change is the Minimum Income Standard (MIS), which asserts that “minimum income is based on needs and not wants, but it 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.” Although MIS varies depending on individual circumstances, the current MIS of at least £5.23 per hour considers housing costs such as renting or mortgage payments and car ownership.
In determining this wage increase, attention was given to current cost-of-living pressures affecting both employees and employers. The policy acknowledges the limitations businesses face in absorbing large increases within a single year while emphasizing the importance of raising St Helena's minimum income level to encourage employment retention.
This year's increase follows consultations with various stakeholders including employers, employees, and the Chamber of Commerce. The minimum wage will undergo another review in early 2026 with public consultations planned for further adjustments for the period of 2026/27.
Since its introduction in 2013, St Helena's minimum wage has risen significantly from £2.30 to £4.50 for those over 18 years old and from £1.45 to £3.55 for those aged 16 or 17 years—a cumulative increase of 95% and 145%, respectively.
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