The new rates of minimum wage, approved by Tynwald in February, mean an increase of the headline minimum wage rate from £8.25 to £9.50 per hour come into force on April 1.
The rates for those aged 16-17 and for Development Workers will also be increased from £6.15 to £6.80 and £7.30 to £8.05 respectively.
Dr Alex Allinson MHK, Minister for Enterprise, commented: ‘We have been given a clear mandate from Tynwald to increase our rates of minimum wage over the next few years in order to align with the calculated Living Wage for the residents of the Isle of Man. Recent increases in energy prices and the overall cost of living have made this measure more important than ever. The Island Plan reinforces this commitment and this increase signals the start of our journey towards this goal.
‘This is the first increase since 2019 and whilst it is recognised that this will impact some businesses, many have in effect already raised wage levels in order to retain and attract new workers in such a competitive market. It is also imperative that the Isle of Man does not fall behind our close counterparts in the UK, and is able to maintain a strong and competitive proposition when working to fill labour shortages and promote the Island as a secure, vibrant and sustainable place to live and work.’
Surviving Not Living
While this increase represents a 15.15% increase for those aged over 18, 10.5% increase for those aged 16-17 and 10.27% for development workers, the increase in the cost of living, as well as increase energy bills will eat a large chunk of these increase.
The increases fall below the current living wage, which was recorded as £10.87 an hour in 2021.
|Minimum Wage Hourly Rates|
|Age Rate||Current Rate||New Rate||Change increase|
|Single Hourly Rate|
(i.e. main rate that applies to those aged 18 and over)
|Rate for those aged 16-17||£6.15||£6.80||£0.65|
|Rate for development workers||£7.30||£8.05||£0.75|