Business leaders in Jersey are warning that implementing the living wage in the island could cost people their jobs.
It comes as the States of Jersey debates whether to pay all of its contractors the rate of £9.75 an hour.
The States already pays the living wage to its full-time employees.
The move has prompted campaigners to call for businesses in the island to follow this example.
However, business leaders say this could have a range of consequences, including increasing costs for companies, lower hours for workers, possible job losses and higher costs to consumers.