Minimum Wage increase in July - if Tynwald agrees

DfE and Treasury suggest increase to £11.45

Minimum Wage on the Isle of Man could rise to £11.45 an hour from 1 July, should Tynwald give it the green light.

The Department for Enterprise and Treasury have recommended the increase from £10.75.

There've been calls for an increase ever since the UK's minimum wage surpassed the Isle of Man's on the 1 April.

It went up to £11.44, one pence below the new suggested rate.

The Minimum Wage Committee said it wasn't able to recommend an increase for the start of the new financial year due to a lack of information about the impact it would have on Manx businesses.

So, instead, it suggested an 'interim rise' which government has matched.

It will increase in July if approval is given in May's sitting of Tynwald.

An increase to the Youth Rate (for those aged 16-17) will take it from £8.05 to £8.75, which is a larger jump than that recommended by the committee.

Government says it wants to avoid increasing divergence between the two rates.

It says an interim rise in the rates also helps ensure progress towards the Island Plan target of aligning the Minimum Wage with the Living Wage by April 2025.

Going forward, the DfE and Treasury say they will bring forward any proposals for further increases to Tynwald ahead of the summer recess.

Enterprise Minister Tim Johnston has thanked the Committee for the interim recommendation.

He says: 'The proposed interim rates ensure that momentum is maintained in respect of the Island Plan commitment for the Minimum Wage to reach parity with the Living Wage by April 2025, whilst recognising that the impact on employers, particularly those operating small businesses, needs to be considered.'

'I believe the proposals for interim increases to the Minimum Wage strike the right balance at this moment in time, whilst the outcome of the impact assessment is awaited and the Committee are able to consider and bring forward final recommendations on a longer term approach.'