Manx minimum wage rise to £11 proposed by committee

The island's minimum wage is currently set at £9.50

The minimum wage on the Isle of Man could rise to an hourly rate of £11 under proposals by an independent committee reviewing the figure.

The plan forms part of a move to align the statutory hourly rate with the voluntary Living Wage by 2025.

The Minimum Wage Committee said the £1.50 increase reflected a 10% rise in inflation and a step forward in that transition.

People and businesses have been asked to submit their views on the proposal.

The plan follows a request by Enterprise Minister Lawrie Hooper for the committee to make recommendations, which would come into force in April 2023.

As the latest Living Wage rate of £11.05 was calculated before inflationary pressures started to build, that figure is expected to rise as well in due course.

'Income disparities'

In August, it was revealed that the recommended voluntary hourly rate had been overestimated since 2017, but had now been corrected.

Mr Hooper said aligning the two figures would "address income disparities in the island and ensure it remains a prosperous place for our residents to call home".

"I recognise that the current climate, with increasing costs of living and inflation, has imposed financial challenges for both individuals and businesses," he said.

"It is imperative that any changes to the minimum wage rate in the Isle of Man balances the needs of employers and the working population."

He added that the review would ensure any decision about the minimum wage was "fully informed by the Manx community" and took into account "the variety of the challenges faced across our economy".

Views on the proposed new minimum wage figure can be submitted until 28 November and will be considered by the committee before a final recommendation is put before Tynwald.