Jersey's Living Wage is rising to £13.41 per hour for 2024.
The rate is set by social justice charity Caritas Jersey.
CEO Patrick Lynch says the uprating is in line with the latest inflation figure of 10.1%.
He says the Living Wage has never been so important for so many people at a time of unprecedented cost of living challenges.
"We have seen over recent weeks and months, along with our charity partners, foodbanks and others, the huge increase in need across our island.
As we enter into winter there is real concern about the levels of poverty and those people for whom their wages no longer meet their outgoings, such are the increases they have experienced in rent, utilities and other costs."
Caritas Jersey is licensed by the Living Wage Foundation in the UK to accredit employers in Jersey.
Employers are encouraged to sign up to paying all employers at the Living Wage as a minimum, to 'play a part in eradicating poverty in Jersey'.
Jersey's Minimum Wage will rise to £11.64 on 1 January 2024.
Mr Lynch says he awaits the publication of a government report into the Minimum and Living Wages.
"We hope that this will signal that they will make good on their post-election commitment to raise the minimum wage to parity with the Living Wage during the lifetime of the current assembly.
We are disappointed that, as the licenced Living Wage organisation in Jersey, Caritas were not consulted as part of the review but invite them to engage with us after the publication of the report to examine how best to ensure a smooth transition to parity between the two rates.”
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