Isle of Man: New £9.50 per hour minimum wage plans revealed

If approved by Tynwald in February the rise will come into force from April

Plans for a new Manx hourly minimum wage of £9.50 for adults "strike a balance" between workers and employers' needs, the treasury minister has said.

David Ashford said the move was part of a wider plan to align the minimum wage with the living wage - currently £10.87 per hour - within the next five years.

Tynwald will be asked to approve the £1.25 per hour rise next month, with the changes introduced from April.

Development workers and 16 to 17 year-olds would also see their pay increase.

The alignment of the minimum and living wages was one of the recommendations set out last year by a Tynwald committee which investigated the issue of poverty on the island.

The Living Wage is intended to represent the minimum level of pay necessary to allow people the basic opportunities and choices necessary for them to participate in society.

Mr Ashford said it was now a key policy to address "income disparities", with a recent "dramatic increase" in the cost of living driving the decision.

Young people aged 16 and 17 will see their minimum pay go up from £6.15 to £6.80 per hour, and development workers will see rates climb from £7.30 to £8.05.

The minimum wage on the island has been frozen at £8.25 since 2019 while neighbouring countries have implemented increases.

Enterprise Minister Alex Allinson said it was "imperative" the island did not fall behind the UK, and was able to fill labour shortages by offering competitive salaries.

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