Approval sought to increase minimum wage by 9.9%

The new proposed hourly rate would see a rise from £12.25 to £13.46

Politicians will be asked to approve a further 9.9% increase in the minimum wage on the Isle of Man after Tynwald agreed to use a new method to calculate the rate.

If approved, the change set to go before Tynwald next month, would see the hourly rate rise from £12.25 to £13.46 in April.

In July, Tynwald backed a move to base the rate on 66% of median earnings, overhauling previous plans to align the figure with the living wage.

The move would also see the youth rate increase by 12.7% with the hourly rate rising from £9.55 to £10.76.

'Fair wages'

Treasury Minister Alex Allinson said the new rate "strikes the right balance between meeting the needs of our community by prioritising fair wages for those on low pay," while supporting the "financial stability of businesses."

Previously, the rate had been set out in regulations made by the Department for Enterprise and Treasury after consulting with the Minimum Wage Committee with consideration including the effect on employment, inflation and costs of industry.

Enterprise Minister, Tim Johnston, said the length of time between approval and implementation "offers businesses and workers a deserved level of certainty."

However, he said: "I am also fully aware that an increase in the minimum wage may impact businesses."

The government has confirmed that it will review the impact og the new rate which would be published by December 2026.