On Feb. 26, 2025, IOM GVT reported minimum wage rates increase from Apr. 1, 2025.
IOM PRL approved new rates at Feb. sitting, which means the Single Hourly Rate increases to £12.25, and the Youth Rate will be increased to £9.55.
UK GVT's Department for Enterprise confirmed that work has begun with Treasury, working jointly with the Minimum Wage Committee, to review existing process.
This is with regard to determining proposals related to minimum wage, which will consider the statutory requirements as set out in the Minimum Wage Act.
Also considers IOM PRL's policy to achieve parity with living wage by Jul. 2026.
On Jan. 15, IOM GVT issued new proposed wage rate to deliver parity.
The Tynwald will be asked to approve increases to Isle of Man’s Minimum Wage at the Feb. 2025 sitting which would see it achieve parity with Living Wage of £13.05 in 2025.
The rates, proposed by the Department for Enterprise (The Department) and Treasury, will see the Island’s single hourly rate initially increase from £11.45 to £12.25 per hour from Apr. 1, 2025, with then a further increase to £13.05 per hour from Oct. 1, 2025.
The proposed two-part increase will align the Island’s Minimum Wage rate with current Isle of Man Living Wage by Oct, 2025, in accordance with current Tynwald position of achieving parity in five years, following accepted recommendation on poverty in 2021.
The phasing in of the proposed increases seeks to strike a balance between ensuring the Island remains an attractive place to live and work, and prioritizing fair wages.
It also recognizes the impact on some businesses in the economy and follows concerns expressed in 2024 by the Minimum Wage Committee on a single increase in Apr. 2025.
The Department and Treasury have also agreed to a review of the current process for determining proposals in respect of the Minimum Wage, consider the current statutory requirements prescribed in Minimum Wage Act, and alignment with the Living Wage.
Currently the Island is unique in the way it calculates Living Wage based on a basket of goods approach, with other comparable jurisdictions taking a median wages approach.
The review will be informed by a consultation, which was undertaken earlier during 2024, and the learnings from the recent process in determining the current proposals.
Next Steps
The two sets of proposed increases will be brought to the Tynwald at Feb. 2025 sitting.
Feb. 2025 Revised Proposals
On Feb. 4, 2025, IOM GVT revised minimum wage rates proposals, following feedback.
New proposals will see IOM PRL asked for approval of a single initial increase to the main rate of the minimum wage to £12.25 from Apr. 1, 2025.
Both Department and Treasury have decided to defer commitment for the originally proposed second increase to £13.05 in Oct. and instead will prioritize a review.
Specifically into the current methodology of agreeing proposals with regard to minimum wage and its connectedness with the living wage, accordingly.
This is with the objective to report on their findings to IOM PRL in Jul. 2025.
Proposals set out an increase of the single hourly rate from £11.45 to £12.25 per hour from Apr. 1, 2025, and youth rate will increase from £8.75 to £9.55 on the same date.
Youth rate is for those over compulsory school leaving age but not yet 18.
Single proposed increase will be brought forward to IOM PRL at Feb. 2025 sitting and, further to approval, will be in effect from Apr. 1, 2025, according to IOM GVT.
Feb. 26, 2025 Approved Minimum Wage Increase
On Feb. 26, 2025, IOM GVT reported minimum wage rates increase from Apr. 1, 2025.
IOM PRL approved new rates at Feb. sitting, which means the Single Hourly Rate increases to £12.25, and the Youth Rate will be increased to £9.55.
UK GVT's Department for Enterprise confirmed that work has begun with Treasury, working jointly with the Minimum Wage Committee, to review existing process.
This is with regard to determining proposals related to minimum wage, which will consider the statutory requirements as set out in the Minimum Wage Act.
Also considers IOM PRL's policy to achieve parity with living wage by Jul. 2026.
