New Minimum Wage rates to come into effect on 1st October
Changes to the Isle of Man minimum wage rates are to take effect from the 1st October 2018. The key changes include an increase to the main rate of the minimum wage and the removal of different rates for those aged 18 to 20 and 21 to 24, so that the main rate of the minimum wage will simply apply to all those aged 18 or over.
The minimum wage for those aged 18 or over will become £7.85 an hour, representing an hourly increase of 35p for workers over 25 years, 65p for workers aged 21 to 24, and £1 for workers aged 18 to 20.
The changes, which were unanimously approved by Tynwald in July 2018, were sought to encourage fairness and equality across the Isle of Man, while supporting the Island’s initiative to attract and retain younger workers.
Laurence Skelly MHK, Minister for Enterprise, commented:
“We believe these changes balance the needs of employers and our working population; they position the Isle of Man as a progressive, diverse and attractive place to live and work, while simplifying guidelines for local employers. We will continue to work closely with the Minimum Wage Committee, Treasury and local businesses to monitor the impact of these changes.”
The Department’s continued assessment of the minimum rates of pay is in line with the Programme for Government’s commitment to investigate the option of a living wage. The Department and Treasury will consider further a proposal to increase minimum wage year on year, to attain the level of the Manx living wage in the future.