Adults in Guernsey will be paid at least £12 an hour from October 2024.
The States of Guernsey have approved plans from the Committee for Employment and Social Security to increase both the adult and young persons minimum wage.
From 1 October 2024, people over the age of 18 will be paid at least £12 an hour, an increase of £1.35 from the current minimum wage.
Meanwhile, under-18s will receive £1.15 more, taking their hourly rate to £10.80.
Jersey's minimum wage is due to rise to £13 in April 2025.
Guernsey's Deputy Sue Aldwell says keeping the minimum rate too low would be damaging to industry.
"We have much-needed people coming to work here in hospitality or retail. Will they come here and earn £60 pound less than Jersey next year? I don't think so."
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