MINIMUM WAGE TO INCREASE FROM 01 JULY 2025
At a meeting of the Executive Council held on 11 March 2025, an increase to the minimum wage of 50p per hour was approved.
This change will take effect from 01 July 2025 and will increase from £4.00 to £4.50 for persons over 18 years, and £3.05 to £3.55 for persons aged 16 or 17 years. This represents an annual increase of 12% and 16% respectively.
The approval of this increase is in line with the objective of establishing a more ambitious minimum wage, benefitting workers and providing adequate time for businesses to plan and adapt.
The principle informing the minimum wage is that of the Minimum Income Standard (MIS), which states 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 the MIS varies for people based on their specific circumstances, the current MIS of at least £5.23 per hour is dependent on the cost of housing, which includes costs to a family for renting accommodation or paying a housing loan, and car ownership.
In determining the increase, consideration was given to the current cost of living pressures on both employees and employers and it was noted that a balance would need to be struck. The Minimum Wage Policy therefore recognises that there is a limit to the size of increases that businesses can absorb in a single year, whilst at the same time acknowledging the need to continue raising the minimum income level on St Helena to go some way in encouraging residents to remain in employment on St Helena.
This year’s increase follows consultations with employers, employees and other relevant stakeholders including the Chamber of Commerce.
The minimum wage will be reviewed again in early 2026 and will include public consultation to consider further uplifts for the period 2026/27.
Since its inception in 2013, the minimum wage has raised from £2.30 to £4.50 for persons over 18 years, and from £1.45 to £3.55 for persons aged 16 or 17 years. These increases equate to a 95% and 145% rise respectively.
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