Department for Enterprise welcomes interim proposals from the Minimum Wage Committee

The Department for Enterprise has welcomed the interim recommendations on minimum wage rates in the Isle of Man published by the Minimum Wage Committee (“the Committee”).

The Committee commenced deliberations on increases to the rates of the Minimum Wage in October last year.  Following a public consultation and call for evidence, the Committee felt they were not in a position to bring forward a recommendation at that time without a further impact assessment being undertaken.  The Department, together with Treasury, agreed to the request of the Committee for a further assessment to be commissioned with expected completion later this month.

Ahead of the Committee considering the outcomes of this work, and prior to bringing forward a full recommendation, the Minister for Enterprise requested consideration of proposals for an interim increase, both to maintain momentum towards the Island Plan target of achieving parity with the Living Wage by April 2025, and in recognition of ongoing cost of living pressures.

The Department, acting jointly with Treasury, have considered the interim recommendations from the Committee and will now progress final proposals for Council of Ministers approval ahead of bringing forward to Tynwald at the May 2024 sitting.

Tim Johnston MHK, Minister for Enterprise, commented: ‘I am grateful to the Minimum Wage Committee for considering proposals for an interim increase to the rates of Minimum Wage pending completion of the additional impact assessment and their final deliberations.

‘Government remains committed to the Minimum Wage reaching parity with the Living Wage as set out in the Island Plan, but recognise the need to consider the broader impact on businesses, particularly small businesses, in our domestic economy.’

Subject to Council of Ministers approval, the final proposed rates to be brought forward for Tynwald approval will be publically announced, ahead of being placed on the Register of Business.  The Department is conscious of the need to allow businesses sufficient time to prepare for the implementation of any increases and the effective date will also be confirmed at the same time as the proposed Minimum Wage rates.