Isle of Man minimum wage rise 'must be phased in'

The proposed rise would come into force from April if approved by Tynwald

Proposals to increase the Isle of Man's minimum wage from April will not give businesses enough time to adapt, the island's chamber of commerce has said.

Tynwald are due to be asked to back a £1.25 rise to £9.50 per hour.

Chamber president Kristan McDonald said it would have a "knock-on effect for proportionate wage rises across the board" for many firms.

The government previously said the rise was needed for the island to remain competitive.

The proposed changes would also see the 16 and 17-year-olds' minimum pay go up from £6.15 to £6.80 per hour, and rates for development workers rise from £7.30 to £8.05.

A recent survey of island businesses showed about 24% felt the timeline for the implementation of the April rise gave them enough time to adapt, while 49% said it did not.

'Phased implementation'

Mr McDonald said combined with inflationary pressures, it would leave the majority of firms with "no choice other than to push the 13% rise on to the consumer".

"It's clear that many feel that they have had very little time to respond to the financial impact this increase will have," he added.

"A phased implementation would give businesses more time to adapt."

The island's minimum wage has remained static since 2019.

In 2021, Tynwald members supported bringing it into line with the £10.87 Living Wage rate within five years.

Announcing the proposed rise in January, Treasury Minister David Ashford said since that vote, the island had "seen a dramatic increase in cost of living, alongside unprecedented low levels of unemployment", which meant there was already "upward pressure" on wages above the legal requirement.

The government had "endeavoured to strike a balance between the needs of employers and the needs of our working population, alongside supporting the position of our island as a progressive, diverse and attractive destination", he added.