Proposals to increase the minimum wage in the island will go before next month’s Tynwald sitting.

The Minimum Wage Committee has made an interim recommendation to increase the hourly rate from £10.75 to £11.45, which will be 1p above the rate the UK is due to set.

The youth rate should also increase, from £8.05 to £8.50, it has recommended.

Enterprise Minister Tim Johnston welcomed the committee’s recommendations and said his department will now submit final proposals to the Council of Ministers for approval ahead of a motion to the May Tynwald.

But he said the final proposed rates won’t be publicly announced until CoMin approval has been secured.

The Minister said: ‘I am grateful to the minimum wage committee for considering proposals for an interim increase to the rates of minimum wage pending completion of the additional impact assessment and their final deliberations.

‘Government remains committed to the minimum wage reaching parity with the living wage as set out in the Island Plan, but recognise the need to consider the broader impact on businesses, particularly small businesses, in our domestic economy.’

The committee began deliberations on increases to the rates of the minimum wage in October last year. 

Following a public consultation and call for evidence, the committee felt they were not in a position to bring forward a recommendation without a further impact assessment. 

That impact study is due to be completed later this month.

Ahead of this, the Enterprise Minister requested consideration of proposals for an interim increase.

Conscious of the need to allow businesses sufficient time to prepare for the implementation of any increases, the effective date will be confirmed at the same time as the proposed minimum wage rates are announced.

In the UK the minimum wage is called the national living wage.