Follows feedback from 'industry and other representatives'
Plans to increase the Island's Minimum Wage in two phases this year have been revised.
The original proposal, announced last month, would have seen the rate increase from £11.45 per hour to £12.25 from 1 April, and then up to £13.05 from 1 October.
Now, however that second planned uplift is to be put on hold.
It means Tynwald will only be asked to approve the single increase up to £12.25 from April.
The Department for Enterprise and Treasury says the decision to defer the second increase - which would've aligned the Minimum Wage with the Living Wage - follows feedback from industry and a range of representatives.
The Chamber of Commerce had previously said the move would have a 'significant impact' on businesses.
The new proposal would also see the youth rate, for those over compulsory school leaving age but not yet 18, increase from £8.75 to £9.55 from 1 April.
Enterprise Minister Tim Johnston says: 'The subject of Minimum Wage and regular increases is often a difficult topic whereby Government must try to strike the right balance of increasing the safety net for low paid workers, whilst also considering the impact on the wider economy and local businesses.
'The pressures faced by our domestic economy are well documented, and in announcing the previous proposals we set out a commitment to review the long-term options for determining the Minimum Wage. In particular, the impact of the current Tynwald policy position to achieve parity with the Minimum Wage and Living wage rates, which places the Island in a unique position to other jurisdictions, requires further detailed consideration.
'While we still have the ambition of achieving parity with the Living Wage, we are aware of the pressures that will be felt across our economy, particularly around the second proposed increase, and the need to strike the right balance.
'Therefore, we are revising the proposal set out last month to only bring forward a single increase to Tynwald in February and will be working with the Minimum Wage Committee on the review as a priority, with the aim to report back in July 2025.
'I would like to thank businesses and sector representatives for raising their concerns and am confident we can continue to work together to find a way forward.'
Treasury Minister Alex Allinson says: 'While Government remains committed to delivering the Tynwald resolution to match the Minimum Wage with the Living Wage, we also have a duty to listen to the concerns of Honourable Members and the wider business community.
'That is why we are amending our plans for seeking approval for a dual increase at the February sitting of Tynwald and will be carrying out further work on the relationship between the calculation of the Living Wage and the Minimum Wage to meet our obligations to the lowest paid workers in our community, while also recognising the challenge for businesses.'
The single proposed increase will be brought forward to Tynwald at this months sitting, starting 18 February.
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