MHKs have accused the government of creating a “two-tier” minimum wage system that will see migrant workers entitled to a higher pay than islanders.
The issue was raised in Tynwald by Liberal Vannin leader Lawrie Hooper, who questioned whether the minimum wage would be increased to £13.05 by October 2025 to match the proposed salary threshold for migrant worker visas.
The minimum salary threshold for Worker Migrant visas will rise to £25,447.50 from October 1 2025, up from £20,800.
Enterprise Minister Tim Johnston confirmed no decision had been made, stating, “It is not intended to bring proposals forward in respect to a specific minimum wage rate at this stage.”
He added that a review of the minimum wage process would be debated in July.
Subclass
Mr Hooper pressed the Minister, asking: “Does he not see that the risk here is that he may be creating a subclass of workers where Manx workers are the ones employed in low-income jobs?”
Mr Johnston defended the policy, explaining that immigration salary thresholds serve a different purpose, saying, “Ensuring [visa holders’] level of pay is reasonable is of greater importance to avoid the risk of exploitation.”
Julie Edge said she was “appalled” by the system and said the government was playing “greater importance on immigration, people immigrating to our island to be paid a higher pay than local people”.
She demanded the business case for the immigration rules be circulated.
Treasury Minister Dr Alex Allinson further defending the policy, stating it aimed to ensure migrant workers “are paid an adequate wage, but at the same time, are not seen to be undercutting workers who are already here.”
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