Further details of review into minimum wage 'in coming weeks' says minister

Hourly rate set to increase by 80 pence from 1 April

Further details of a review into how the Island's minimum wage is calculated will be released in the coming weeks.

The enterprise minister says his department looks forward to engaging with local businesses and representative groups, workers, trade unions, the third sector and members of Tynwald.

The minimum wage will rise by 80 pence per hour from 1 April but following a U-turn by the department a second increase will not come into effect in October as originally planned.

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Tim Johnston says his department is striving to ‘enhance the safety net for low-paid workers’ whilst considering the ‘broader economic impact’ on Manx businesses.

Work is underway with Treasury, and the Minimum Wage Committee, on a review into the current Tynwald policy of achieving parity with the Living Wage by July 2026.

Mr Johnston added: “I believe that the approach government has set out, including the increased rates approved by Tynwald last week, is the correct path to take at this stage.

“Minimum Wage workers will benefit from a seven percent increase to the headline rate from April whilst we take advantage of the window of opportunity to review, reflect and consider if the current approach is correct.

“As confirmed in Tynwald, work is already underway planning the review into how the Minimum Wage is calculated, how future proposals are brought forward, as well as how a statutory Minimum Wage interacts with a Living Wage, and I will be reporting back to Tynwald on this no later than July.

“Further details of the review will be released in coming weeks including how all interested parties can contribute their views.

“The department looks forward to engaging with as broad a range of stakeholders as possible, including local businesses and representative groups, workers, trade unions, the third sector and Members of Tynwald.”