Jersey's minimum wage will increase to £11.64 an hour from £10.50 an hour.
It follows a recommendation by the Jersey Employment Forum. Social Security Minister, Deputy Elaine Millar, also accepted recommendations for higher allowances for employers who provide accommodation and meals to their workers.
The rise in the minumum wage will start in January 2024. The increase of 10.9% is in line with the Jersey Retail Price Index (RPI) figure in June. From 1 January 2024, Jersey will have a single minimum wage rate which will apply to all employees above school leaving age who are in receipt of the minimum wage.
Ms Millar said: "The government remains committed to seeing real increases to the minimum wage level.
"The Forum’s recommendation to increase the minimum wage by the June 2023 RPI figure of 10.9% and by more than the increase in average earnings is welcome. "I believe this change will make a positive difference to those on the lowest wages."
Carla Benest, chair of the Employment Forum, thanked employers and emplyees for their contributions to a consultation.
"We recognise that these are still challenging times for businesses and employees, and the forum has endeavoured to reflect that in our recommendations," she said.