The Isle of Man Chamber of Commerce has welcomed the decision to increase the minimum wage rate from £12.25 to £12.86 from April 1.
A 5% increase and is in line with Chamber’s analysis which shows that it’s a sustainable and fair increase for employers and employee, and is broadly in line with increases in the UK.
Chamber is pleased that the Chief Minister, Council of Ministers and Tynwald have taken on board the concerns across the business community, especially the retail and hospitality sectors, about the impact the previously proposed 9.9% increase would have had on the economy.
It believes that instead of helping low‑paid workers, a 9.9% increase would have led to many of them losing their jobs.
Tax Allowances Changes
Chamber says it is also “pleased to see that proposals to increase personal tax allowances will be included in next month’s Budget”.
It added: “It’s good to see that the Chief Minister, Council of Ministers and Tynwald have listened and responded to these serious and widespread concerns.
“Setting a more realistic and reasonable minimum wage rate – and taking steps to put more money in employees’ pockets – will help workers and employers to cope with rising costs. Most importantly, it will help to protect jobs and encourage future investment in business.”
Chamber concluded its statement saying: “Chamber has always supported a fair, evidence-based approach to wage-setting that protects lower-paid workers while remaining sustainable for employers and the wider economy.
“Fair pay matters – especially when employees are facing rising living costs – but business viability is vital to support a strong, resilient and growing economy.
“We and our members think that the new policy direction supported by Tynwald this week is the best way forward to support existing businesses and attract inward investment.”
