Tynwald approve new methodology for determining Minimum Wage proposals in the Isle of Man

21 July 2025

The Minimum Wage rate in the Isle of Man is to be set at 66% of the Isle of Man Median Earnings, following Tynwald approval at the July sitting.

Additionally, to provide greater certainty to both businesses and those earning minimum wage, Minimum Wage proposals will be brought to Tynwald for approval in October each year, with an implementation date of the following April.

These changes formed part of a series of recommendations that were debated in July Tynwald following the publication of a review into the Minimum Wage methodology and its link with the Living Wage. The review encompassed feedback across a range of stakeholders including low paid workers and employers.

Tynwald also approved that a review into the impact of the implementation of this policy be conducted and published by the end of December 2026, together with agreeing that any relevant legislative changes, including the role and function of the Minimum Wage Committee, were considered and brought forward as part of the 2026-27 legislation programme.

Tim Johnston MHK, Minister for Enterprise commented: ‘Determining the appropriate level for the minimum wage is a complex issue, whereby Government must balance ensuring fair pay for low-income workers with maintaining economic stability.

‘Over the summer the Department, working with Treasury, will complete the necessary work required to bring forward the new rates to October Tynwald and, subject to approval, the new Minimum Wage rates will be implemented from April 2026.’

Dr Alex Allinson MHK, Treasury Minister added: ‘I am pleased that we can now provide a clearer and more predictable rate for both workers and businesses going forward, offering them a level of certainty that they have been asking for. Tynwald now have an agreed method of calculating the Minimum Wage which much better reflects pay rates on our Island and shares the benefits of the continued growth in our economy.’