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."
Iran effect looming in Guernsey's latest inflation figures
Alderney to explore data centre hosting
Prime Guernsey seafront location for sale
Woman (20) arrested on suspicion of attempted murder in Guernsey
Last day to register for Guernsey's upcoming by election
New citizen science project observing Guernsey dragonflies and damselflies
Channel Islands music school to hit global stage with Dubai launch
67,000 sickness days across the States of Guernsey last year
