The fifth Isle of Man Government Living Wage report has been published and calculates the figure for 2022 at £11.05 an hour.
The calculation reflects a weekly wage, before tax, of £414.38 and an annual salary of £21,547.50 based on the assumption of working 37.5 hours per week.
The Isle of Man Living Wage is a voluntary rate of pay that organisations can choose to adopt to demonstrate their position as responsible employers, whereas the Minimum Wage is legally enforceable.
As part of the introduction of a programme of improved quality assurance procedures, officers from Statistics Isle of Man (formerly known as Economic Affairs) identified miscalculations in previous Manx Living Wage rates. The methodology used to reach the figure has been corrected and miscalculations contained in previous years have been addressed. This process has been externally validated by the Centre for Social Policy Research at Loughborough University.
In July 2021, Tynwald agreed with the Select Committee on Poverty’s recommendation that the Minimum Wage in the Isle of Man should rise to meet the Living Wage by April 2026. A commitment has since been made within Our Island Plan to ensure this happens sooner, by 2025.
Treasury Minister Alex Allinson MHK said:
‘It is absolutely right that we continue to follow the recommendations of the Select Committee, and Our Island Plan sets us on the road to make changes during this administration that will benefit those in our community who are most in need.
‘It is essential that individuals and businesses have confidence that the methodology used to calculate the Living Wage is robust and accurate. The historical miscalculation is regrettable and I hope the external verification by a respected academic body in the field of social policy provides reassurance.’
Taking into account these miscalculations, the Manx Living Wage for previous years should have been:
- 2021: £9.63, rather than £10.87
- 2020: £9.38, rather than £10.19
- 2019: £8.93, rather than £9.76
- 2017: £7.81, rather than £8.61.
The Treasury Minister added:
‘The Council of Ministers has agreed that the Isle of Man Living Wage calculation should be externally validated on an annual basis to ensure independent oversight and maintain business and public confidence.’
