9.9% Minimum Wage increase approved

Hourly rate will rise to £13.46 from 1 April

The Isle of Man's Minimum Wage will increase next year, following Tynwald approval.

From 1 April the hourly rate will rise from £12.25 to £13.46. 

The 9.9 percent uplift marks the first approved increase to based on 66 percent of Isle of Man Median Earnings, following changes to how the rate was calculated earlier this year.

An increase in the Youth Rate (for those who are over compulsory school age but under 18) from £9.55 to £10.76 has also been approved.

Earlier this month the Island's Minimum Wage Committee agreed not to recommend the Minimum Wage increase over concerns that the move would prove 'unsustainable for a cross section of low paying employers'.

Meanwhile, the Isle of Man Chamber of Commerce reported 'widespread concern' amongst the Island's businesses, especially in the hospitality sector.

During the debate, Arbory Castletown and Malew MHK Jason Moorhouse urged members to be cautious of the move, saying "businesses are closing their doors and blaming costs".

Ramsey MHK Lawrie Hooper proposed an amendment to allow for a smaller rise in April to £13.00 followed by another rise on 1 October 2026 to £13.74, but this was defeated.

Enterprise Minister Tim Johnston argued the timing of the increase being approved provided 'certainty', giving businesses time to plan.

The vote as follows: