Tynwald next month will be asked to approve a 9.9% increase in the island’s minimum wage.

If approved, the increase in the single hourly rate from £12.25 to £13.46 will come into effect from April 1 next year.

This follows approval at the July Tynwald of the recommendation that the rate should be set at 66% of Isle of Man median earnings.

The youth rate will also rise, from £9.55 to £10.76, a 12.7% increase.

Tim Johnston MHK, Minister for Enterprise, said: ‘Determining minimum wage rates has historically been a complex issue, so I am pleased that these proposals are based on a revised methodology – approved by Tynwald in July - which provides a more structured approach to setting the minimum wage.

‘The extended lead in between Tynwald approval of the proposed rate and implementation in April 2026, also offers businesses and workers a deserved level of certainty.

‘However, I am also fully aware that an increase in the minimum wage may impact businesses, particularly smaller businesses in our domestic economy.

‘The department offers a range of support for businesses, including funding, training and advisory services that can be accessed to support a range of initiatives. I would encourage any business with concerns or who wishes to find out more about potential support, to contact the department directly.’

Treasury Minister Dr Alex Allinson MHK, said: ‘I believe the new rate strikes the right balance between meeting the needs of our community by prioritising fair wages for those on low pay, whilst also supporting the financial stability of businesses to ensure our commitment to a sustainable and secure economy for the future.’

The Department for Enterprise and Treasury will conduct a review into the impact of the implementation of this policy and will publish it by the end of December 2026.