Chamber backs revised minimum wage rise after government U-turn

Business group says five percent increase strikes a 'sustainable balance'

The Isle of Man Chamber of Commerce has welcomed the decision to raise the minimum wage for workers aged over 18 from £11.45 to £12.86 from 1 April, following a series of rapid changes by government.

The new rate represents a five percent increase, after an earlier proposal for a rise of nearly 10 percent was scaled back following months of criticism by the business sector.

The Chamber says the revised figure is sustainable for employers while still delivering a meaningful increase for employees, and notes it’s broadly in line with a recent uplift announced in the UK.

In a statement, the organisation says it is pleased the chief minister, the Council of Ministers and Tynwald had taken on board concerns raised by the business community, particularly in the retail and hospitality sectors.

It argues that the previously proposed 9.9 percent increase risked leading to job losses rather than supporting lower-paid workers.

CoC also welcomes confirmation that proposals to increase personal tax allowances are expected to be included in next month’s Budget, describing it as a complementary measure that would help put more money in employees’ pockets.

It claims it and other organisations had been campaigning for months for changes to both the minimum wage and personal tax allowances, and welcomed what it described as a shift in policy direction.

The Chamber reiterated its support for an ‘evidence-based approach’ to wage-setting, saying fair pay is important amid rising living costs, but that business viability remains essential to protecting jobs, supporting investment, and maintaining a resilient Island economy.