At a recent Executive Council meeting on March 11, 2025, an increase in the minimum wage was approved. This change will take effect on July 1, 2025. The new rates will be £4.50 per hour for individuals over 18 years old and £3.55 per hour for those aged 16 or 17 years. These adjustments represent annual increases of 12% and 16%, respectively.
The increase aligns with the objective to establish a more ambitious minimum wage that benefits workers while allowing businesses time to adapt. The principle behind the minimum wage is based on the Minimum Income Standard (MIS), which suggests that “minimum income is based on needs and not wants, but it provides more than what is just needed for survival.” The MIS varies depending on individual circumstances but currently stands at least £5.23 per hour, factoring in housing costs and car ownership.
In determining this year’s increase, considerations included current cost-of-living pressures affecting both employees and employers. It was acknowledged that businesses have limits to how much they can absorb in one year while recognizing the need to raise minimum income levels to encourage employment retention on St Helena.
This year’s increase followed consultations with employers, employees, and stakeholders like the Chamber of Commerce. Another review of the minimum wage will occur in early 2026 with public consultation planned for further changes in the period of 2026/27.
Since its introduction in 2013, the minimum wage has increased 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 old—an overall rise of 95% and 145%, respectively.