The Chamber of Commerce wants Tynwald to support proposed changes to how minimum and living wage rates are calculated.
This follows a review by the Department for Enterprise.
The Chamber, representing over 450 businesses, has campaigned for revisions amid concerns over rising overheads, including wage demands, particularly for SMEs and the retail and hospitality sectors.
Recent government figures revealed that 25% of private renters on the Isle of Man are living in relative poverty, with many struggling under rising housing costs and inflation.
Important
Chamber CEO Rebecca George said: “We welcome the publication of the review and thank the Department for Enterprise and Treasury for their comprehensive study and inclusive stakeholder engagement.
“This report – and the eight recommendations to change how rate increases are calculated – marks an important step towards establishing a more predictable, transparent, and economically grounded methodology.”
The Chamber highlights six key recommendations, including setting the minimum wage at 66% of median earnings, introducing a fixed annual review timetable, and retaining youth wage bands.
Ms George added: “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.”
The current living wage is £13.74 per hour, while the minimum wage stands at £12.25 (£9.55 for under-18s). The Chamber argues the proposed changes would balance business viability with fair pay.
“There is a delicate balance to be found,” she said, “and we feel the Department’s recommendations are in the best interests of employers, employees and the economy.”
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