The Chamber of Commerce has criticised the proposed new minimum wage, despite twice publicly backing how it would be calculated.
A new minimum wage of £13.46 per hour is set to come in from April, subject to Tynwald approval.
In a statement issues today, the CoC said the increase “represents one of the largest adjustments in recent years and a jump that will likely make it one of the highest minimum wages globally”.
The Chamber however welcomed the move earlier this year, while expressing concerns about the use of public sector pay in the calculations and calling for it to be removed when the minimum wage was set.
While Chamber will no doubt point to the concerns it raised before the implementation of the new system and after, its critics will almost certainly point to an effort to keep low wages low, particularly in the hospitality sector.
Concerned
In a statement released today, it said: “While we support fair pay, we remain deeply concerned about the impact this sharp rise, three times the rate of inflation will have on local businesses, particularly in the hospitality, retail, and care sectors, where operating margins are already under extreme pressure.
“This winter, higher wage costs will combine with higher energy bills and reduced consumer spending. Many of our members and small employers are already highlighting that they simply cannot absorb these combined pressures.
“The increase also underscores a long-standing concern raised by the Chamber: the use of the combined median wage to set benchmarks masks the growing disparity between public and private sector pay.
“Public sector salaries tend to be significantly higher, and merging these figures with lower private sector earnings creates reference points that are unrealistic and unsustainable for many employers. Again, this has been a serious concern of the Chamber and its members.”
Also Chamber
However, this is the same Chamber of Commerce that in June called on Tynwald to “back proposals in a Department for Enterprise report which would change how minimum and living wage rates are calculated“.
It called on members to back this move, while saying it would be “seeking further clarity on how the median is calculated, including the data sources used, how part-time or seasonal roles are factored in, and how regularly the benchmark will be reviewed”.
At the time it said: “Chamber supports the Department for Enterprise review’s recommendations to move to a calculation based on 66% of median earnings because this method reflects international norms and provides a data-led and responsive basis for wage setting.
“It is a more sustainable and balanced alternative to aligning the minimum wage directly with the living wage, particularly in the context of business viability and inflationary pressures.”
Following that Tynwald vote, it then welcomed the move, while, it would point to, warning “success of this approach will depend on how the median benchmark is defined and applied”.
It said: “Isle of Man Chamber of Commerce welcomes Tynwald’s approval of a new methodology linking the minimum wage to median earnings.
“This is an important step toward a more consistent and evidence-based wage-setting system, and one that supports fair pay while maintaining economic viability for employers.”
Now
Now, after several businesses criticised the plans, some of which will be Chamber of Commerce members, it released this statement:
The Chamber noted back in July that changes to the minimum wage calculation methodology were imminent. The now-confirmed 9.9% increase represents one of the largest adjustments in recent years and a jump that will likely make it one of the highest minimum wages globally.This comes at a time when official figures show that inflation is considerably lower. The inflation report for August 2025, compiled and published by the Statistics Isle of Man team at the Cabinet Office, shows the annual rate of inflation was just 3.3%.
While we support fair pay, we remain deeply concerned about the impact this sharp rise, three times the rate of inflation will have on local businesses, particularly in the hospitality, retail, and care sectors, where operating margins are already under extreme pressure. This winter, higher wage costs will combine with higher energy bills and reduced consumer spending. Many of our members and small employers are already highlighting that they simply cannot absorb these combined pressures.
The increase also underscores a long-standing concern raised by the Chamber: the use of the combined median wage to set benchmarks masks the growing disparity between public and private sector pay. Public sector salaries tend to be significantly higher, and merging these figures with lower private sector earnings creates reference points that are unrealistic and unsustainable for many employers. Again, this has been a serious concern of the Chamber and its members.
We urge the Government to work with the Chamber and publish a detailed impact assessment of this wage increase, and to consider targeted support measures for the most affected sectors. Without such support, there is a serious risk of more business closures and job losses at precisely the time our economy needs resilience and stability.
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