Tynwald will be asked to approve the new rate of minimum wage in the Isle of Man at the October sitting which, if approved, will come into effect from 1 April 2026.
The proposed Single Hourly Rate will increase to £13.46, following approval at the July sitting of Tynwald of the recommendation that the rate should be set at 66% of Isle of Man Median Earnings. The Youth Rate will also increase to £10.76, retaining a £2.70 differential from the main rate.
Additionally, in order to provide greater certainty to both businesses and workers, the proposals align with a further recommendation approved by Tynwald that the minimum wage rates are brought to Tynwald in October and, subject to approval, are implemented the following April.
Tim Johnston MHK, Minister for Enterprise commented: “Determining minimum wage rates has historically been a complex issue, so I am pleased that these proposals are based on a revised methodology – approved by Tynwald in July – which provides a more structured approach to setting the Minimum Wage.
“The extended lead in between Tynwald approval of the proposed rate and implementation in April 2026, also offers businesses and workers a deserved level of certainty. However, I am also fully aware that an increase in the minimum wage may impact businesses, particularly smaller businesses in our domestic economy.
“The Department offers a range of support for businesses, including funding, training and advisory services that can be accessed to support a range of initiatives. I would encourage any business with concerns or who wishes to find out more about potential support, to contact the Department directly.”
Dr Alex Allinson MHK, Treasury Minister added: “I believe the new rate strikes the right balance between meeting the needs of our community by prioritising fair wages for those on low pay, whilst also supporting the financial stability of businesses to ensure our commitment to a sustainable and secure economy for the future.”
