Chamber of Commerce welcomes new approach to Minimum Wage but shares 'concerns'

Success of median-earnings method 'depends on how benchmark is defined and applied'

Isle of Man Chamber of Commerce says while it welcomes government taking a new approach to the Island's Minimum Wage calculations, it has concerns.

Following approval in Tynwald this month, the rate of pay will now be linked to a percentage of median earnings.

Not all members of Tynwald were on board with this new approach, however the chamber says it's an 'important step toward a more consistent and evidence-based wage-setting system, and one that supports fair pay while maintaining economic viability for employers.'

You can find more information HERE.

The chamber adds, however, that the success of this approach will depend on how the median benchmark is defined and applied. 

It says its members believe that using a combined public-private sector figure can distort outcomes, especially in a scenario where public sector pay is significantly higher and not tied to profitability or investment.

During a recent review undertaken by the Department for Enterprise into the Minimum Wage and its link with the Living Wage, there was engagement with the Chamber of Commerce as well as low-paid workers, Tynwald Members, hospitality businesses, tourism providers and 'others with a direct interest in the current policy'.

Chamber of Commerce CEO Rebecca George says: "We support the direction of travel, but we also want to ensure that this policy shift results in fair, workable outcomes for businesses and employees alike."

Manx Radio has approached the Department for Enterprise for response.