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Minimum wage changes widen age differential

Workers aged 21 and over earning the minimum wage will see a rise in their pay packets if Tynwald agrees new rates - but there's no extra money for younger workers. 

Later this month Economic Development minister Laurence Skelly will ask the court to raise the hourly rate for those aged 21 and over from £6.40 to £6.65, an increase of 3.9 per cent.

Mr Skelly says the change will recognise the 'greater experience and skills' the older group has over younger workers.

He's also proposing a new wage bracket for 18 to 20 year olds who would have qualified for the rise - that group will see their minimum earnings frozen at £6.40 per hour. 

There's no rise for 16 year olds whose rate will remain at £4.67 or 17 year olds who earn £5.24 per hour.

It represents an effective cut in the value of earnings for those on the lowest rates, with the government's latest annual inflation figure shown in the Retail Price Index at 2.8 per cent.

Mr Skelly says the changes aim to find a balance between the demands of employers and employees and are in line with government policy to 'protect the vulnerable and make work pay'.

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