UK Minimum Wage rises above Isle of Man rate

There's been no increase at the start of the new financial year because the Minimum Wage Committee said it was unsure how it would affect Manx businesses.

Since then, however, Treasury Minister Alex Allinson asked if the committee to consider recommending an interim increase.

The Committee says it received favourably the suggestion of a 6 per cent rise, however that would lead to a rate of £11.39 - below the UK.

So, instead, it's recommended a rise to £11.45, one pence above the UK's rate, to 'leave Manx workers ever so slightly ahead' as a 'minor recognisance of the increased cost of living on the Island.'

It's also recommended the Youth Rate (Over compulsory school age but under 18) of £8.05 should increase to £8.50 - slightly below the 6 per cent proposal of £8.53 an hour.

The Committee says it felt the saving of 3p an hour may 'assist employers'. It will leave them behind their UK counterparts, though.

Whilst no announcement has been made since, Treasury has previously committed to increasing the rate at some point this year.

In February a contractor was tasked with carrying out an impact assessment, with the work due to be completed this week.

The Minimum Wage Committee says it will consider that impact study and propose a more 'fully considered wage recommendation' with the aim for it to take effect from October.

You can find out more here.