Interim increases to the island’s minimum wage will be put forward for approval during May’s Tynwald sitting.

The new rates, proposed by both the Department for Enterprise (DfE) and Treasury following interim recommendations from the minimum wage committee, comprise an increase to the single hourly rate from £10.75 to £11.45 per hour.

Meanwhile, the rates for young people aged 16-17 would increase from £8.05 to £8.75.

Following the recommendations, both the DfE and Treasury are proposing a larger increase to the youth rate than that proposed by the Committee to ‘avoid increasing divergence between the two rates’.

A spokesperson from the government said: ‘An interim increase is being proposed at this stage given the additional impact assessment being undertaken by the committee ahead of considering longer term recommendations, as well as ensuring progress towards the Island Plan target of achieving parity with the living wage by April 2025 is maintained.

‘The committee expects to conclude the additional impact assessment shortly and will undertake further deliberations ahead of bringing forward any further recommendations. Following this process, the DfE and Treasury will bring forward any proposals for further increases to Tynwald ahead of the summer recess.’

Minister for Enterprise, Tim Johnston, commented: ‘Once again, I would like to thank the committee for bringing forward their interim recommendation, while they conclude their additional impact assessment.

‘The proposed interim rates ensure that momentum is maintained in respect of the Island Plan commitment for the minimum wage to reach parity with the living wage by April 2025, whilst recognising that the impact on employers, particularly those operating small businesses, needs to be considered.

‘I believe the proposals for interim increases to the minimum wage strike the right balance at this moment in time, whilst the outcome of the impact assessment is awaited and the Committee are able to consider and bring forward final recommendations on a longer term approach.’

Subject to approval, the proposed rates will be implemented from July 1.

When the delay to the increased minimum wage rates was announced in January because of the absence of a committee recommendation, a spokesperson from the government said: ‘Whilst this clearly will be a disappointment to some, the committee has a responsibility to consider the social and economic impact of any recommendation in respect of the rates and, as such, its request for additional time to understand the potential impact must be considered.’