Chamber urges Tynwald to back new minimum & living wage proposals | June 2025
19 June 2025
Isle of Man Chamber of Commerce wants Tynwald to back proposals in a Department for Enterprise report which would change how minimum and living wage rates are calculated.
The move follows the Department publishing the results of a review into the methodology used to calculate minimum and living wage rates. Chamber has been campaigning for a revision of the proposed changes to both rates for over a year due to widespread business concerns about the impact on overheads, especially for SMEs and the retail and hospitality sectors.
Chamber CEO Rebecca George said: “We welcome the publication of the review and thank the Department for Enterprise and Treasury for their comprehensive study and inclusive stakeholder engagement. This report – and the eight recommendations to change how rate increases are calculated – marks an important step towards establishing a more predictable, transparent, and economically grounded methodology for setting the minimum and living wage rates on the Island.”
Chamber – which is the Island’s largest business network representing over 450 organisations – is calling on Tynwald to support all eight recommendations made in the review, but highlights the following six as being the most important from a business and economic point of view:
- Adoption of a methodology that sets the minimum wage at 66% of Isle of Man’s median earnings. While this is welcomed, Chamber will also be seeking further clarity on how the median is calculated, including the data sources used, how part-time or seasonal roles are factored in, and how regularly the benchmark will be reviewed
- Introduction of a fixed annual timetable for submitting proposals in October each year, for implementation the following April
- Retention of two age related minimum wage bands, including a youth (aged 16 to 18) rate set £2.70 below the single adult (aged 18 and over) rate
- Continued assessment of the accommodation offset
- A commitment to monitor the policy’s impact and maintain the flexibility to refine it as necessary
- A commitment to clarify the role and function of the Minimum Wage Committee
These and the other recommendations would, says Chamber, be a step forward in addressing trends that are of growing concern to its members and the wider business community. These concerns include the following:
- The gap between the Isle of Man’s minimum wage and living wage has narrowed from £1.60 to £1.49 per hour this year
- The living wage (which is not mandatory) for 2025/26 is currently set at £13.74 per hour (for workers of any age), up by 69 pence from the previous year; the legal minimum wage stands at £12.25(and £9.55 for under-18s)
Rebecca George added: “Chamber supports the Department for Enterprise review’s recommendations to move to a calculation based on 66% of median earnings because this method reflects international norms and provides a data-led and responsive basis for wage setting. It is a more sustainable and balanced alternative to aligning the minimum wage directly with the living wage, particularly in the context of business viability and inflationary pressures. We recognise that wage rates for those on low incomes need to keep pace with the rising cost of living, and play a role in helping businesses to address skills and labour shortages. There is a delicate balance to be found, and we feel the Department for Enterprise’s recommendations are in the best interests of employers, employees and the economy.”
Click here to read Chamber’s detailed response to the minimum and living wage recommendations. The Department for Enterprise’s review (which is available online – click here) and its recommendations are scheduled to be debated in the July 15th to 17th Tynwald sitting.