The Isle of Man has reviewed and announced interim increases to the Minimum Wage, and a future change to align with the Living Wage.
At the May 2024 sitting of Tynwald, the following interim increased Minimum Wage Rates were approved. These rates apply from 1st July 2024.
The Tynwald has also previously resolved to raise the level of the Minimum Wage to the level of the Living Wage (currently £13.05 but due for further review by April 2025) during 2025. These interim rates above are therefore expected to be replaced when that applies.
Isle of Man Living Wage
The Living Wage is distinct from the Minimum Wage, and as in the UK is a voluntary rate of pay that is calculated with reference to the broader cost of living for different household types. It is intended to represent the minimum level of pay necessary to allow people the basic opportunities and choices necessary for them to participate in society.
The Isle of Man Living Wage follows the same methodology as the Living Wage Foundation in the UK, and uses the Minimum Income Standards (MIS) for different types of households, produced by the Centre for Research in Social Policy (CRSP), to calculate the hourly Living Wage rate. There are some Manx adjustments made to the baskets to ensure the calculation reflects living on the Isle of Man, such as additional travel costs for holidays and postage rates.
Accommodation Offset
The Accommodation Offset remains unchanged. The maximum accommodation offset is:
- £1.05 per hour
- £6 per day
- £42 per week
Previous rates of the Minimum Wage
At the February 2023 sitting of Tynwald, the following increased minimum wage rates were approved. These rates applied from 1st April 2023.
It should also be noted that the ‘development worker’ rate has been abolished from 1 April 2023.
PAYadvice.UK 27/5/2024