Minimum Wage Committee agrees not to back 9.9% uplift

Fears £13.46 rate could be unsustainable for some businesses

The Island's Minimum Wage Committee has agreed not to recommend a proposed 9.9 percent increase in the rate.

An uplift from £12.25 to £13.46 will be put before Tynwald members next week for approval.

If given the go-ahead, it would come into force from 1 April 2026.

It's the first time an increase based on 66 percent of Isle of Man Median Earnings has been suggested - following changes to how the rate was calculated earlier this year.

Some businesses, however, aren't happy, with the Chamber of Commerce saying there's widespread concern, especially in the hospitality sector.

In its reasons for not backing the proposed increase, the Minimum Wage Committee says it believes the £13.46 rate would be unsustainable for a cross section of low paying employers.

It also feels it's more likely to have a negative effect upon inflation than a positive one.

When the new proposed rate was announced, Enterprise Minister Tim Johnston said he was 'fully aware that an increase in the minimum wage may impact businesses, particularly smaller businesses in our domestic economy'.

He added: 'The Department offers a range of support for businesses, including funding, training and advisory services that can be accessed to support a range of initiatives. I would encourage any business with concerns or who wishes to find out more about potential support, to contact the Department directly.'

Meanwhile, Treasury Minister Alex Allinson said: 'I believe the new rate strikes the right balance between meeting the needs of our community by prioritising fair wages for those on low pay, whilst also supporting the financial stability of businesses to ensure our commitment to a sustainable and secure economy for the future.'

The proposals will be put before Tynwald members next week - the sitting getting underway on Tuesday, 21 October.

You can find the notice from the Minimum Wage Committee HERE.