Chamber again urges MHKs to support pragmatic minimum wage compromise to protect jobs | Jan 2026
15 January 2026
The Isle of Man Chamber of Commerce has consistently warned of the impact that a significant minimum wage increase would have on employment, business viability and the wider economy. These concerns, set out clearly in the Chamber’s open letter to Members of Tynwald in December, remain firmly grounded in ongoing feedback from businesses across the Island.
Despite this, there remains a lack of recent Treasury data on how many employees are affected by the minimum wage, in which sectors, and what the cumulative cost to employers will be. This absence of evidence continues to undermine confidence that policy decisions are being taken on a fully informed basis.
Businesses are now operating under sustained cost pressure, with many already reviewing staffing levels, hours and future investment decisions. If Government proceeds with the introduction of a minimum wage increase in April this year, the Chamber of Commerce believes it is essential that any increase is set at a level that reflects economic reality and protects employment. Chamber says that the independent Minimum Wage Committee’s recommendation provides the most credible and evidence-based benchmark available.
Any further increase beyond April, says Chamber, should be subject to review by a new House, informed by updated accurate data and prevailing economic conditions, rather than being pre-committed in advance. Proceeding beyond this, in the absence of robust data and clear evidence of affordability, would materially increase the risk of job losses and business contraction.
The Chamber therefore supports the motion from Julie Edge MHK which is in the 20 January House of Keys Order Paper. She is proposing a 5% increase from 1 April 2026, in line with the recommendation of the independent Minimum Wage Committee, followed by a further 4.9% increase from 1 November 2026, subject to determination by a new House following the General Election. This would achieve the Government’s goal to bring in a 9.9% increase, phased in over a longer period to give businesses more time to adapt.
This approach would still deliver a meaningful uplift for lower-paid workers, while providing businesses with greater certainty and helping to avoid unnecessary job losses. While employers do support measures to raise incomes for low paid employees, a much better approach would be to reduce the tax burden and other financial pressures they face.
The Chamber urges members and the wider business community to engage directly with their constituency MHKs ahead of next week’s Tynwald sitting and to ask them to support a balanced, evidence-based compromise that protects both workers and employment.