Plans for higher rise in youth minimum wage rate

There are plans to align the Manx minimum wage with the living wage by 2025

Tynwald is set to be asked to approve a higher than recommended rise in the minimum wage for younger workers.

The government has released plans to increase the hourly rate for those aged 16 and 17 by 70p to £8.75.

The Minimum Wage Committee had called for a 45p rise in the youth rate to counter the cost to employers of its recommendation to lift the adult rate from £10.75 to £11.45 as an interim measure.

While the Department for Enterprise and the Treasury backed the recommended adult rise, they have proposed the increases are equal to "avoid increasing divergence between the two rates".

Enterprise Minister Tim Johnston said the proposal ensured that "momentum is maintained" in line with a commitment to align the minimum wage with the living wage by April 2025.

The committee published its recommendations for interim rises last week following a delay to the annual proposals while more information about the potential knock-on effects of aligning the two rates.

It released interim proposals at the request of the government while that work continues.

Mr Johnston said that was necessary while the departments considered "the impact on employers, particularly those operating small businesses".

"I believe the proposals for interim increases to the minimum wage strike the right balance at this moment in time," he said.

If approved by Tynwald in its May sitting, the new rates would come in from 1 July.