Politics
No Minimum Wage Rise Until July
The gov will put an interim increase in the minimum wage forward at the May Tynwald.
Islanders earning the minimum wage face waiting until July before getting a pay rise.
The gov will put an interim increase in the minimum wage forward at the May Tynwald.
Following a recommendation from the island’s Minimum Wage Committee, the DfE and the Treasury will recommend an increase in the legal minimum hour rate from £10.75 to £11.45 per hour, while the rates for young people aged 16-17 will increase from £8.05 to £8.75.
The MWC had recommended increasing the minimum wage to 1p above the UK hourly rate for those over 21 but only recommended increasing the youth rate to £8.50, rather than £8.75.
A decision has been made by ministers to raise the youth rate higher to ‘avoid increasing divergence between the two rates’.
However, while recommending the increases to Tynwald, the gov has said that it will not go to Tynwald when it sits this week, but will be on the May order paper and, if approved by members, would come into force from July 1.
Enterprise Minister Tim Johnston said: ‘The proposed interim rates ensure that momentum is maintained in respect of the Island Plan commitment for the Minimum Wage to reach parity with the Living Wage by April 2025, whilst recognising that the impact on employers, particularly those operating small businesses, needs to be considered.
‘I believe the proposals for interim increases to the Minimum Wage strike the right balance at this moment in time, whilst the outcome of the impact assessment is awaited and the Committee are able to consider and bring forward final recommendations on a longer term approach.’
The gov has also said that it will bring forward any proposals for further increases to Tynwald ahead of the summer recess, which is in July, just weeks after these proposed increases could come in.
Aligning the island’s minimum wage with the living wage is due to be reached in 2025. The Isle of Man Living Wage for 2023/24 stands at £12.01 per hour.
Also relevant
