Politics

Interim Rise Proposed for Mimimum Wage

Douglas South MHK Claire Christian has shared a letter on her Facebook page saying the committee has recommended an interim increase while it waits for a full impact assessment on rates of pay.

Published

2 years ago

04/04/2024

Sam Turton

People earning the minimum wage could see a 70p-an-hour increase as part of an interim increase.

The island’s minimum wage is currently below the UK’s rate of £11.44 an hour, for over 21s, compared to £10.75, for over 18s. In the UK, the national living wage is the minimum wage.

Douglas South MHK Claire Christian has shared a letter on her Facebook page saying the committee has recommended an interim increase while it waits for a full impact assessment on rates of pay.

The Single Hourly Rate will rise from £10.75 to £11.45, slightly above the initial 6% proposed increase. The Youth Rate will increase from £8.05 to £8.50, rather than the calculated £8.53.

However, these increases will need to be confirmed by Tynwald and that relevant Tynwald order has yet to appear for this month’s sitting.

Claire Christian MHK

Mrs Christian said: ‘Please note that while this is good news for the interim, a further increase is most likely inevitable as indicated in October, however, due to no increase in the personal allowances in this year’s budget it seems pointless to increase the minimum wage.

‘This is as people call it is a “tax grab”. Quote from the Committee “The Committee considered that for a 37-hour week the NI and Tax take would increase from a total of 10.17% to 11.39%, leading to a very small increase in take-home pay.’

The committee had previously declined to make a recommendation, saying a more detailed impact assessment was needed.

Mrs Christian has also shared the letter from chair Anne Weadock to DfE Minister Tim Johnston recommending the rise, saying that the 1p an hour higher rate here means that ‘Manx Minimum Wage earners ever so slightly ahead, as a minor recognisance of the increased cost of living on the island, which the Committee intends to consider, and make recommendations regarding, fully once the evidence becomes available at a later date’.