Jersey's Minister for social security, Elaine Millar, has agreed to increase the minimum wage level to £11.64 an hour from 1 January next year.
The decision comes after she was presented with a report by the Jersey employment Forum which recommended the increase be made from the current level of £10.50 an hour.
This would see the minimum wage level on the island rise by 10.9%.
She has also accepted a number of other recommendations made in the report including to increase the offset rates that employees receive for meals and accommodation.
Deputy Millar described the Forum's recommendations as "welcome" and added that "the Government remains committed to seeing real increases to the minimum wage level".
"I believe this change will make a positive difference to those on the lowest wages".
Want to find out more about the stories making the headlines? Don't miss Channelcast - the Channel Islands current affairs podcast brought to you by ITV News: