New Minimum Wage rate of £13.46 proposed

If approved, the £1.21 uplift will come into effect from 1 April 2026

Minimum Wage on the Island could increase from £12.25 to £13.46 next year.

The proposed uplift will be put before Tynwald for approval next month.

If members give the proposal their backing during October's sitting the new hourly rate will come into effect from 1 April 2026.

It's the first time an uplift has been suggested following approval at the July sitting of Tynwald that the rate should be set at 66 percent of Isle of Man Median Earnings. 

Read more HERE.

The Youth Rate (for those who are over compulsory school age but under 18) will also increase from £9.55 to £10.76, if approved.

Enterprise Minister Tim Johnston says: 'Determining minimum wage rates has historically been a complex issue, so I am pleased that these proposals are based on a revised methodology – approved by Tynwald in July - which provides a more structured approach to setting the Minimum Wage.

'The extended lead in between Tynwald approval of the proposed rate and implementation in April 2026, also offers businesses and workers a deserved level of certainty. 

'However, I am also fully aware that an increase in the minimum wage may impact businesses, particularly smaller businesses in our domestic economy.

'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.'

Treasury Minister Alex Allinson says: '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 DfE and Treasury have also committed to carrying out a review into the impact of the implementation of this policy, which will be published by the end of December 2026.