Tynwald will be asked to approve interim increases to the Minimum Wage in the Isle of Man at the May sitting.
The proposal is to increase the single hourly rate from £10.75 to £11.45 per hour, while the rates for young people aged 16-17 will increase from £8.05 to £8.75.
The new rates have been proposed by both the Department for Enterprise (DfE) and Treasury following interim recommendations from the Minimum Wage Committee (the Committee).
Minimum wage
The proposed increase for the single hourly rate, the main rate of the Minimum Wage, follows the recommendation put forward by the Committee, however, both the DfE and Treasury are proposing a larger increase to the youth rate than that recommended by the Committee to avoid increasing divergence between the two rates.
As announced last week, an interim increase is being proposed at this stage given the additional impact assessment being undertaken by the Committee ahead of considering longer term recommendations, as well as ensuring progress towards the Island Plan target of achieving parity with the Living Wage by April 2025 is maintained.
The Committee expects to conclude the additional impact assessment shortly and will undertake further deliberations ahead of bringing forward any further recommendations.
Following this process, the DfE and Treasury will bring forward any proposals for further increases to Tynwald ahead of the summer recess.
Subject to approval at the May sitting of Tynwald, the proposed rates will be implemented from 1 July 2024.
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