Tynwald approves increase in Isle of Man minimum wage rates
The Isle of Man minimum wage is slated to rise from £10.75 to £11.45 (a 70p increase), effective July 1, following approval from Tynwald, as reported by the BBC on May 23, 2024.
The increase is part of a broader strategy to align the hourly wage with the living wage by 2025.
Additionally, a 70p raise for 16 and 17 year olds was sanctioned, raising their rate to £8.75.
Businesses had the opportunity to express their views on the increase during the Minimum Wage Committee‘s annual review, aiming to present proposals for April.
The minimum wage committee has requested an independent impact assessment in response to concerns raised by some businesses regarding the potential adverse effects of these increases.
Nonetheless, the interim raises proposed aimed to prevent hourly rates from falling further behind the living wage until the assessment is completed.
Additional Information:
- The committee initially suggested a 45p increase in the youth rate to offset the additional costs for employers resulting from the adult rate hike.
- However, it was argued that this proposal would widen rather than maintain the gap between the two rates, thus proposing a matching increase in the youth rate.
- Concerns were acknowledged about the timing of the increase, however, an emphasis was made on the committee’s recognition of the current economic challenges faced by some businesses, highlighting the importance of balancing the needs of workers with the obligations of employers.
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