The Isle of Man’s Minimum Wage rates will increase from 1st April 2025, following Tynwald approval at the February sitting, with the Single Hourly Rate increasing to £12.25, and the Youth Rate increasing to £9.55. The Accommodation Offset will remain unchanged.
In addition, the Department for Enterprise (the Department) confirmed that work is also underway with Treasury, working jointly with the Minimum Wage Committee, on a review into the existing process for determining proposals in respect of the Minimum Wage, considering the statutory requirements prescribed in the Minimum Wage Act and the current Tynwald policy position of achieving parity with the Living Wage by July 2026.
‘parity with the Living Wage by July 2026’
Minister for Enterprise, Tim Johnston MHK:
‘Bringing forward proposals in respect of the Minimum Wage is always a challenging task, as we strive to enhance the safety net for low-paid workers while considering the broader economic impact on local businesses.
‘I believe that the approach Government has set out, including the increased rates approved by Tynwald last week is the correct path to take at this stage. Minimum Wage workers will benefit from a seven percent increase to the headline rate from April, whilst we take advantage of the window of opportunity to review, reflect and consider if the current approach is correct.’
The Minister added:
‘As confirmed in Tynwald, work is already underway planning the review into how the Minimum Wage is calculated, how future proposals are brought forward, as well as how a statutory Minimum Wage interacts with a Living Wage, and I will be reporting back to Tynwald on this no later than July.
‘Further details of the review will be released in coming weeks, including how all interested parties can contribute their views. The Department looks forward to engaging with as broad a range of stakeholders as possible, including local businesses and representative groups, workers, trade unions, the third sector and Members of Tynwald.’
This increase will come into force from 1st April 2025.
PAYadvice.UK 27/2/2025