Tynwald has approved a new rate to the Island’s Minimum Wage, following the decision in July to adopt a new approach to set the rate at 66% of the Isle of Man’s Median Earnings.
Under the revised methodology the Single Hourly Rate will increase from £12.25 to £13.46, whilst the Youth Rate will also rise to £10.76, with both rates being effective from 1 April 2026.
Tim Johnston MHK, Minister for Enterprise commented: “The Minimum Wage proposal is Government delivering on the longstanding commitment from the Select Policy Committee. The original ambition was parity with the Living Wage in 2025, and after a comprehensive review and recognising the challenges faced over the years, we have developed a more sustainable approach.
“This new rate represents a fair and considered step forward, based on a new methodology that is clear, evidence-based and rooted in the real status of the Island’s economy, while also delivering on the will of Tynwald.
“Throughout this process, achieving the right balance has been key – supporting both our workforce with fair pay with the need to not overburden our business community. However, we do recognise that increases in Minimum Wage rates will create challenges for businesses, particularly smaller employers. The Department for Enterprise offers a range of support through the Enterprise Support Schemes and is also building on wider concerted efforts to increase footfall and demand, through a range of initiatives set out in the local Economy Strategy.”
Dr Alex Allinson MHK, Treasury Minister added: “Our aim was to create a stable, transparent framework for setting the Minimum Wage that gives certainty to both employers and employees, and we welcomed Tynwald’s support in July in agreeing a clear way forward.
“While we are mindful that any increase must be manageable for businesses, fair pay is fundamental to a strong and inclusive economy. By linking the Minimum Wage to median earnings, we are ensuring that wage growth remains connected to the Island’s wider economic performance.”
