Delay in Decision on Minimum Wage

A more detailed impact assessment is needed before the island’s Minimum Wage Committee can make a recommendation.

The committee began reviewing rates in October but has asked for support from Dept for Enterprise and Treasury.

The DfE says that, acting jointly with Treasury, it had intended to determine proposals for increases to the rates of the Minimum Wage during January, seek Tynwald approval in February and, subject to such approval, aiming for an implementation date of April 2024.

A spokesperson said: ‘Following the request of the Committee for support in undertaking a further impact assessment, the Department has requested further details in respect of the scope for such an assessment and is awaiting a response in order to progress.

‘In the absence of a recommendation from the Committee, the Department and Treasury are unable to bring forward proposals at this time. As such, there will be a delay in seeking Tynwald approval and the subsequent implementation of revised Minimum Wage rates.

‘Whilst this clearly will be of concern and disappointment to some, the Committee has a statutory responsibility to consider the social and economic impact of any potential recommendation in respect of the rates of the minimum wage and, as such, their request for additional time to understand the potential impact must be appropriately considered.’

A new timeline will be issued ‘as soon as possible’.

As things stand, the UK’s minimum wage for over 21s, who will quality for the ‘National Living Wage’, will be £11.44 an hour. By contrast, Manx workers over the age of 18 would only be legally entitled to £10.75 an hour.

UK workers aged 18 to 20 would be entitled a minimum of £8.60 an hour, while those under 18 and apprentices would be entitled to £6.40 an hour.

On the island, the only other minimum legal requirement is for those over the school leaving age, but under 18, which is £8.05 an hour.