Statement regarding the revised minimum wage rate proposals announced by DfE | February 2025
05 February 2025
Isle of Man Chamber welcomes the revised minimum wage proposals announced by the Department for Enterprise this week.
The Island’s leading business network – which represents more than 500 organisations on the Island – raised concerns when initial proposals were announced last month [January].
In a statement Chamber said: “Chamber appreciates Government must ensure that Isle of Man minimum wage rates remain competitive, and that lower paid workers are being affected by the rising cost of living too. However, our members and the wider business community felt strongly that the initial proposals would have had a significant impact on businesses in sectors already under pressure due to other rising costs, many of which have provided the backbone of the Island’s economy for decades. In this context there was a serious risk that the original proposals could have been the last straw that led to more business closures and job losses. We are therefore pleased that Government has listened and revised the proposals that will be put before Tynwald.
“The minimum wage increase from April 1st will still add to costs – but we welcome the deferral of the October increase, and Government’s commitment to prioritising the review of its current methodology regarding the minimum wage and living wage. While this is all positive news, we see it as a short-term fix to long-term issues. Looking further ahead, we will therefore continue to encourage Government to give more thought to alternative strategies instead of increasing the minimum wage above the rate of inflation. One such strategy would be to increase tax thresholds for lower paid workers to put more money in people’s pockets and reduce the burden on businesses.”