Hospital doctors in the Isle of Man have accepted a new three-year pay deal, bringing an end to a long-running pay dispute.

In a dramatic last-minute turnaround, members of the British Medical Association (BMA) voted to accept an improved offer from Manx Care after it was tabled in the closing days of a strike ballot.

The referendum, which closed on Monday, July 6, saw 139 of 144 doctors vote in favour of accepting the offer, with only five voting against.

The agreement formally ends the dispute between the BMA and Manx Care and means planned industrial action will no longer go ahead.

Under the deal, senior doctors and dentists employed by Manx Care will receive a 6% pay increase for 2025/26, backdated to April 2025, followed by a further 4.65% increase for 2026/27, also backdated to April this year.

Resident doctors will receive a 7.5% pay rise for 2025/26, followed by a 6% increase in 2026/27, with both awards backdated.

Both groups will also receive an above-inflation increase in 2027/28, set at 1.5 percentage points above the September 2026 Consumer Prices Index (CPI) inflation rate.

The agreement follows a strike ballot in which hospital doctors backed industrial action by an overwhelming margin.

Last week, the BMA announced that 99 of the 104 doctors who voted in the ballot had supported strike action, with the union describing it as a clear indication of the profession's frustration over pay and the wider state of healthcare on the island.

Doctors have argued that their pay has fallen by 29% in real terms since 2008 and have repeatedly called for progress towards restoring its value.

Chair of the Isle of Man Medical Society, Dr Prakash Thiagarajan, welcomed the outcome.

He said: ‘I'm pleased that we managed to win this improved pay offer for doctors on the island without needing to strike.

‘While it's disappointing that we had to escalate to the threat of action, I hope that this can put us back on the right path to ending the real-terms pay cuts that have left colleagues questioning their careers on the Isle of Man.

‘I'm looking forward to continuing productive talks with Manx Care for 2026 and beyond and I want to extend my thanks to the BMA negotiating team who helped make this possible and to the Manx Industrial Relations Service for their support in negotiations.’

The BMA said the dispute had been driven not only by pay but also by wider concerns over the health service.

Earlier this year, the union highlighted findings from its annual Culture of Care Barometer survey, which found many doctors felt there was a lack of strong senior leadership at Manx Care and fewer than a quarter would recommend it as a place to work.

BMA deputy chair of council Dr Emma Runswick said: ‘This result is what happens when a trade union organises together, negotiates together and stands in solidarity together.

‘Delivering care to our communities is what we want to do and that work shouldn't be undervalued or taken for granted by short-sighted financial decisions. Doctors in the Isle of Man should be incredibly proud of this pay offer. Well done to the negotiating team for bringing this dispute to an end.’