New Minimum Wage Rates to come into effect

Changes to the Isle of Man minimum wage rates are to take effect from the 1^st October 2019.

The Department for Enterprise and Treasury carefully considered the Minimum Wage Committee’s report and accepted their recommendations to propose an increase to the headline single hourly rate to £8.25 per hour, representing an increase of approximately 5%.

In light of the absence of a recommendation to consider for the Youth and Development Worker rates, both Departments agreed to propose a broadly similar rise, in percentage terms, to each of these rates. Therefore, the proposed rate for those above compulsory school leaving age but under 18 is £6.15 per hour; and the proposed ‘Development Worker’ rate for those employees undertaking formal, accredited training within the first 6 months of their employment is increased to £7.30 per hour.

The changes, which were unanimously approved by Tynwald in June 2019, were sought to provide adequate social protection for those workers in low paid sectors and ensure that the Island is seen as an attractive place to live and work, remaining a viable choice for young people entering the labour market as well as those seeking to relocate.

Laurence Skelly MHK, Minister for Enterprise, commented:

‘The latest increases support our ongoing efforts to encourage equality and fairness in our society and maintain the Island’s position as an attractive and competitive place to live and work.

‘We do, however, recognise the challenge facing businesses in certain sectors in ensuring their continued profitability and viability in the short to medium term. It is necessary, therefore, to ensure that the process of reviewing the Minimum Wage seeks to achieve that necessary balance going forward.’

Following the latest Minimum Wage Committee report, a review has been initiated to assess the function and remit of the Minimum Wage Committee.

The purpose of the review will be to ensure that any future committee, or group, which advises in this area has sufficient scope, experience and ability to fully examine the variety of challenges faced by certain sectors within the economy as well as the power to recommend a broader range of potential solutions.