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Chamber Statement on 9.9% Minimum Wage Increase


25 September 2025


The Chamber noted back in July that changes to the minimum wage calculation methodology were imminent. The now-confirmed 9.9% increase represents one of the largest adjustments in recent years and a jump that will likely make it one of the the highest minimum wages globally. 

This comes at a time when official figures show that inflation is considerably lower. The inflation report for August 2025, compiled and published by the Statistics Isle of Man team at the Cabinet Office, shows the annual rate of inflation was just 3.3%.

While we support fair pay, we remain deeply concerned about the impact this sharp rise, three times the rate of inflation, will have on local businesses, particularly in the hospitality, retail, and care sectors, where operating margins are already under extreme pressure. This winter, higher wage costs will combine with higher energy bills and reduced consumer spending. Many of our members and small employers are already highlighting that they simply cannot absorb these combined pressures.

The increase also underscores a long-standing concern raised by the Chamber: the use of the combined median wage to set benchmarks masks the growing disparity between public and private sector pay. Public sector salaries tend to be significantly higher, and merging these figures with lower private sector earnings creates reference points that are unrealistic and unsustainable for many employers. Again, this has been a serious concern of the Chamber and its members.

We urge the Government to work with the Chamber and publish a detailed impact assessment of this wage increase, and to consider targeted support measures for the most affected sectors. Without such support, there is a serious risk of more business closures and job losses at precisely the time our economy needs resilience and stability.