The island’s new living wage is £12.01 per hour, up from £11.05 last year.

The Living Wage is intended to reflect the minimum salary necessary for islanders to afford the basic opportunities, choices, goods, and services required for them to participate fully in society.

Calculated by Statistics Isle of Man, the living wage is is based on the same ‘baskets’ of goods and services produced by the Centre for Research in Social Policy. These baskets are then modified slightly to take into account differences between the UK and the Isle of Man.

Statistics Isle of Man said: ‘The hourly wage necessary for each family to maintain the level of expenditure specified by the corresponding basket is then calculated, taking into account taxes and benefits. These hourly wages are the living wages for each type of family. The overall Living Wage is calculated by taking the average of each of these, weighted by the percentage of households each family represents.’

Tynwald has committed to aligning the island’s optional living wage with the minimum wage in 2025.

As of April this year, the island’s minimum wage for over 18s is £10.75, while for under 18s, it is ££8.05.