The people who set the minimum wage are considering what it should be.
The minimum wage committee is made up of employer and worker representatives.
It is asking businesses and individuals to get in touch as part of a review into the rates of the minimum wage here.
The current minimum hourly wages per age group are £8.25 (those aged 18 and over but excluding workers in training), £6.15 (those over compulsory school age but under 18).
Enterprise Minister Laurence Skelly said: ’I recognise that the past year has been challenging for both individuals and businesses.
’The purpose of this review will be to ensure that the committee is able to fully examine the variety of challenges faced across our economy, so that any ultimate decision is fully informed by the challenges and views of the Manx community.’
He added: ’Any changes to the minimum wage rate in the Isle of Man must balance the needs of employers and our working population, and continue to support the position of our island as a progressive, diverse and attractive place to live and work.’
Long-serving Tynwald member and Manx Labour Party member David Cretney said: ’Every year the Manx Labour Party has gone along to the committee and addressed to them our views on this matter.
’It’s very important that people respond. Sadly, the island has slipped behind the UK’s minimum wage and the party thinks that it’s very important that at the very least we make up that difference because the cost of living here is a lot more expensive than most places in the UK.’
Mr Cretney also said that any businesses which were not abiding to the minimum wage ’should be called out’.
Leader of Manx Labour Party Joney Faragher said: ’It is Manx Labour’s policy to continue to increase the minimum wage towards the living wage. A business model that cannot pay the living wage ends up being subsidised by the taxpayer, in the form of benefits for its employees.
’At £10.19 per hour, the Manx living wage is £1.94 an hour more than the minimum wage of £8.25. That is not a sustainable model.
’We also lag behind even the United Kingdom, whose minimum wage is £9.30 and whose cost of living is lower (living wage calculated at £9.50).’
The committee will review submissions received before June 4, alongside the matters outlined in legislation, under the Minimum Wage Act 2001.
This includes the wider social and economic implications of any minimum wage to be instructed under this Act, its likely effects on employment, inflation, costs and competitiveness of businesses, the costs of industry and public authorities in the island and impact on pay, employment and competitiveness in low-paying sectors and small businesses.
The Act also states that submissions must have regard to the effect on different groups of workers, pay structures and the interaction between minimum wage rates and the tax benefit systems.
Submissions can be sent to the minimum wage committee by email: [email protected], or by post to: The Secretary to the Minimum Wage Committee, Department for Enterprise, Nivision House, Prospect Hill, Douglas, IM1 5ET.