Interim minimum wage rise to £11.45 recommended

The island's minimum wage could rise from £10.75 to £11.45

The minimum wage on the Isle of Man should increase by 70p to £11.45 an hour as an interim measure, a committee has said.

The recommendation is part of the Minimum Wage Committee's deliberations as more information about the implications of aligning the rate with the national living wage is compiled.

Tynwald previously backed a move to match up the two figures by 2025.

Putting forward the interim figure at the request of the government, the committee said a "more fully considered wage recommendation" was still needed.

The committee had delayed its annual recommendation in January for a more "detailed impact assessment" of the alignment to be carried out.

Enterprise Minister Tim Johnston said that while the government "remains committed" to the alignment of the minimum wage with the living wage it recognises the "need to consider the broader impact on businesses, particularly small businesses, in our domestic economy".

'Maintain momentum'

Under the proposal, the change to the Manx adult rate would leave it "ever so slightly ahead" of the UK, which has been increased to £11.44.

However, the interim recommendation of a 45p rise in the youth rate to £8.50 would see those younger workers paid 3p less than their UK counterpart, a move the committee said could help offset cost of the adult rise for employers.

Among the matters being considered ahead of the moves to align the minimum and living wage were its effects on inflation, costs to businesses and public authorities, and levels of employment, particularly for disadvantaged groups.

The interim recommendations will be considered by the Council of Minister before being put before Tynwald for approval in May.

The government said it was needed to "maintain momentum towards" the target of aligning the figures and "in recognition of ongoing cost of living pressures".

Final proposed rates would be brought forward at a later date, it added.