Tynwald will be asked to approve interim increases to the Minimum Wage in the Isle of Man at the May sitting.
The new rates, proposed by both the Department for Enterprise (DfE) and Treasury following interim recommendations from the Minimum Wage Committee (the Committee), comprise an increase to the single hourly 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 proposed increase for the single hourly rate, the main rate of the Minimum Wage, follows the recommendation put forward by the Committee, however, both the DfE and Treasury are proposing a larger increase to the youth rate than that recommended by the Committee to avoid increasing divergence between the two rates.
As announced last week, an interim increase is being proposed at this stage given the additional impact assessment being undertaken by the Committee ahead of considering longer term recommendations, as well as ensuring progress towards the Island Plan target of achieving parity with the Living Wage by April 2025 is maintained.
The Committee expects to conclude the additional impact assessment shortly and will undertake further deliberations ahead of bringing forward any further recommendations. Following this process, the DfE and Treasury will bring forward any proposals for further increases to Tynwald ahead of the summer recess.
Tim Johnston MHK, Minister for Enterprise commented:
‘Once again, I would like to thank the Committee for bringing forward their interim recommendation, while they conclude their additional impact assessment.
‘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.’
Subject to approval at the May sitting of Tynwald, the proposed rates will be implemented from 1 July 2024.
