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Minimum Wage Committee agrees with rate change

Photo Credit: Manx Radio

They met urgently this week after political change of heart

The committee charged with considering the Island's minimum wage says it welcomes what it describes as a return to an evidence-based approach.

The Minimum Wage Committee consists of an independent Chair, two members representing employers and two representing workers. 

They met urgently after the past week's political changes, which saw Treasury Minister Dr Alex Allinson sacked and Tynwald deciding to pull the rate increase back from 9.9 percent to five percent from April

The Committee says it supports the single hourly rate now set at £12.86, with a youth rate of £10.16, but in a letter to Enterprise Minister Tim Johnston, it cautions against using a fixed differential between the two in the longer term.

It adds that the reset of the policy reduces the risk of negative impacts on employment and inflation, concerns it says it had previously raised.

The Committee also says the revised outcome strikes a better balance between supporting low-paid workers and protecting jobs, business viability, and long-term economic stability.

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