Media Release | ‘A national crisis’: Chamber & business community call for urgent review of 9.9% minimum wage increase | Dec 2025
08 December 2025
Media Release from Isle of Man Chamber of Commerce:
‘A national crisis’: Chamber & business community call for urgent review of 9.9% minimum wage increase
The 9.9% minimum wage increase due to come into effect next April will have such a devastating impact on the Island’s economy that it now represents a ‘national crisis’.
That’s the view of Isle of Man Chamber of Commerce which is expressed in an open letter to Isle of Man Government and Tynwald. Chamber – which is the Island’s largest business network – says that there is serious concern amongst the 450+ organisations it represents, and across the wider business community.
The open letter warns that if the 9.9% increase is implemented without revision or adequate support, it will cause job losses and business closures on a scale not seen since the Covid‑19 pandemic. Many businesses - particularly in hospitality, retail, care, third sector, manufacturing, and lower‑margin service sectors - are already operating at the limit of viability due to rising costs, wage compression, energy price inflation, and a declining domestic economy. For these reasons, Chamber says an interim rise aligned with the IOM’s Consumer Price Index inflation rate as it stands in April 2026 would be far more sustainable for employers, employees, and the wider economy.
The open letter comes after the UK Government recently announced a minimum wage increase of only 4.1% (which is roughly in line with the current UK inflation rate). It means that from next April, for employees aged 18 to 20, Isle of Man businesses will have to pay them over 24% more than employers in the UK.
Chamber President Claire Watterson said: “Chamber and the wider business community have been warning about the impact of such a big increase for over a year. Without intervention, this increase risks doing the opposite of what is intended: instead of helping low‑paid workers, it could lead to many of them losing their jobs. The challenge now is to set a wage rate that protects the livelihoods of employees while keeping businesses open. We urge Government to work with us immediately on a solution that protects jobs, sustains businesses, and supports the long‑term health of the economy.”
She added: “Chamber recognises the importance of fair wages and a sustainable labour market. We also support the long-term principle of aligning the minimum wage to 66 percent of median earnings. However, our position expressed in July before Tynwald voted on the 9.9% increase, and it remains unchanged today: this methodology can only work if it is based on the private-sector median, not the merged economy-wide median.”
Hospitality, retail, and care were the first to feel the pressure and raise concerns, but this issue has now moved well beyond those sectors. Manufacturing, the third sector and a growing number of white-collar roles are also being affected as wage compression pushes pay scales upwards. The challenge now, says the business network, is to set a minimum wage rate that is sustainable for most businesses because that is in the long-term interests of employers, employees, and the wider economy. Chamber is calling for the immediate actions which are explained in the open letter below (the open letter is also on the Chamber website www.iomchamber.org.im). The open letter has been sent to the Council of Ministers, all other members of Tynwald, and all Isle of Man news media.