The island’s Minimum Wage Committee opposed the introduction of the proposed new minimum wage.
While government is required to consult the committee, it is not required to follow that advice.
In a letter to the government, the committee said it had concerns about the proposed rise and how it would hit low paying industries, some disabled workers and inflation, amongst others.
Chair Anne Weadock said: “Further to your e-mail of 22nd August 2025 the Committee has now briefly had the opportunity to meet to consider the proposed £13.46 rate to become the Single Hourly Rate from April 1 2026.
“The Committee has agreed not to recommend that rate.”
Concerns
Amongst its concerns, the committee listed the wider social and economic implications of any minimum wage and the effects on employment, especially amongst disadvantaged groups.
Although, Ms Weadock’s letter added: “The committee felt that if the policy is to move to the same calculation as the UK, that this would not have a negative effect upon competitiveness; however the Committee wondered whether emulating the UK in this regard was the direction the Government desired?”
The Committee said it could support changes that would lead to a £12.42 or £12.62 hourly minimum wage.
The letter added: “Whilst the Committee feels unable to recommend the proposed rate, the Committee does applaud the change of approach taken in removing the link to the Living Wage, which is becoming increasingly unrealistic for small businesses and low paying employers to achieve.
“The Committee would recommend further finessing of the policy application to further help business, and support jobs. The Committee would also value the opportunity to partake in the review of the Committee process.”
Tynwald is due to vote on the proposed increase next week.
You can read our other coverage on the proposed rise here.