This years budget shows total budgeted government expenditure (inclusive of reserve funding) of £1.3 billion, whilst total budgeted government employee costs of over £550 million, that’s 41% of total expenditure.
This is 55% more than the total budgeted benefits payable.
With this, Treasury acknowledge government pay awards in excess of budget provision is a “pressure and risk” for the year ahead.
From “probable” 22/23 employer costs to budget is 9% increase or £43.5 million in lay man’s terms.
Budget expenditure
The IOM public service office for human resources says on its website that around 9000 people or 23% of working population is employed by the IOM Government.
Based on that, an average civil servant employment cost per head of £61k, significantly more than the median wage in the IOM.
EMPLOYED PEOPLE
- Median wage of £34,996 per year will be £194 worse off ( £16 per month);
- Low earners on National minimum wage, £20,683 per year, will be £85.80 better off (due to change in NI thresholds);
- £48k a year earner will be £761 a year worse off (£63 a month);
SELF EMPLOYED
- £50k annual profits will mean they are £813 a year worse off (£67.75 a month) and take less home than UK self employed tax payers;
- £75k annual profits will mean they are £1,313 a year worse off (£109 a month).
Whilst Isle of Man inflation is at 5.2% and the Government have acknowledged that costs of living, its solution to help us all seems to be to take additional taxes, NI and rates from hard working people.
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