The Isle of Man Chamber of Commerce says a lack of Treasury data on the impacts of a minimum wage increase undermines confidence in policy decisions.
The lobby group cited a lack of recent Treasury data on how many employees are affected by the minimum wage, in which sectors, and what the cumulative cost to employers will be.
It says this absence of evidence continues to undermine confidence that policy decisions are being taken on a fully informed basis.
Impacts on Employment
Chamber released its statement in response to developments in the House of Keys this week regarding the minimum wage increase scheduled to come into effect in April.
Onchan MHK Julie Edge has tabled a phased approach to the minimum wage, which is due to be put before Tynwald next week. Despite previously voting against proposals to do this.
Chamber said: “Businesses are now operating under sustained cost pressure, with many already reviewing staffing levels, hours and future investment decisions.
“If Government proceeds with the introduction of a minimum wage increase in April this year, the Chamber of Commerce believes it is essential that any increase is set at a level that reflects economic reality and protects employment.
“Chamber says that the independent Minimum Wage Committee’s recommendation provides the most credible and evidence-based benchmark available.
“Any further increase beyond April, says Chamber, should be subject to review by a new House, informed by updated accurate data and prevailing economic conditions, rather than being pre-committed in advance.
“Proceeding beyond this, in the absence of robust data and clear evidence of affordability, would materially increase the risk of job losses and business contraction.”
In Support of Change
It added: “The Chamber therefore supports the motion from Julie Edge MHK which is in the 20 January House of Keys Order Paper. She is proposing a 5% increase from April 1 2026, in line with the recommendation of the independent Minimum Wage Committee, followed by a further 4.9% increase from November 1 2026, subject to determination by a new House following the General Election.
“This would achieve the government’s goal to bring in a 9.9% increase, phased in over a longer period to give businesses more time to adapt.
“This approach would still deliver a meaningful uplift for lower-paid workers, while providing businesses with greater certainty and helping to avoid unnecessary job losses. While employers do support measures to raise incomes for low paid employees, a much better approach would be to reduce the tax burden and other financial pressures they face.”
Chamber of Commerce has urged members and the wider business community to engage directly with their constituency MHKs ahead of next week’s Tynwald sitting and to ask them to support a balanced, evidence-based compromise that protects both workers and employment.
The 9.9% increase was backed by Tynwald members, following a methodology supported by the Chamber which Tynwald also backed.
