Chamber of Commerce raises concerns over minimum wage rise

Business group warns sharp increase could put pressure on local employers

The Isle of Man Chamber of Commerce has expressed concern over government proposals to raise the minimum wage from £12.25 to £13.46 per hour.

The 9.9 percent rise, which the Chamber says is one of the largest in recent years, comes as the Island’s inflation rate stands at 3.3 percent.

The organisation warns that the increase, three times the rate of the consumer prices index could hit sectors such as hospitality, retail, and care, where operating margins are already under strain.

It also reiterated long-standing concerns about the use of median wage data, which combines public and private sector salaries, arguing this creates benchmarks that are “unrealistic and unsustainable” for many employers.

The Chamber is urging the government to publish a detailed impact assessment and to consider targeted support measures, warning that without such steps there is a risk of further business closures and job losses.