Guernsey's employment committee dropped its plan to match 16- and 17-year-olds' minimum wage to the adult rate after consultation, leaving young workers on 90% of the adult level.
From 1 October, if approved, the adult minimum wage would rise to £13.10 while the youth rate would be £11.80 instead of being equalized.
Employer groups and the Committee for Economic Development argued younger staff often need more supervision and training, and warned removing the differential could cut entry-level hiring and work experience opportunities.
The committee said consultation responses showed a clear split of views and, although it still backs equalization in principle, accepted there was a risk employers might recruit fewer young workers.
The revised proposal goes to the States in July, where lawmakers will decide whether to adopt the new rates.