The Isle of Man Government’s latest accounts show its workforce is forecast to cost £2million every single day.
That equates to just over £14million a week in forecast employee spending.
The government’s total forecast employee bill of £729,987,000 is running £17.2 million over budget for the 2025/26 financial year, according to Treasury’s latest update.
The report states that “Employee costs are currently forecast to be £17.2m ahead of budget, net of related internal fund claims.”
Driving The Overspend
The report highlights that superannuation costs within Executive Government are the biggest contributor to the overspend, with a forecast £11.1million adverse variance based on current run rates.
This single pressure point accounts for the majority of the £17.2million gap between forecast and budget.
While Treasury itself is forecasting a £2.4million favourable variance, this is outweighed by higher than budgeted staffing costs across several major departments, including: DEFA, DESC, DHA, DHSC and Manx Care.
These departments are all projecting employee costs above their allocated budgets.
Some of the overspend is offset by approved internal fund claims, which reduce the headline figures within the accounts.
However, even after these adjustments, the government still faces a net £17.2million adverse variance on employee costs.
The full report can be found here.
