The living wage in the island is now £10.19 an hour - up from £9.76 last year, according to a Cabinet Office report.

It’s the third time a figure for the living wage has been calculated, with previous reports published in 2017 and 2019.

The £10.19 rate reflects a weekly wage, before tax, of £386 and an annual salary of £20,083.

The Manx living wage is purely a voluntary rate of pay that companies can choose to adopt to demonstrate their position as responsible employers, whereas the minimum wage is legally enforceable.

It is intended to represent the minimum level of pay necessary to allow people the basic opportunities and choices necessary for them to participate in society.

At £10.19 an hour, the Manx living wage 2020 is £1.94 an hour more than the island’s current minimum wage of £8.25 for over 18s and compares with £9.30 for the UK living wage.

This would amount to an annual increase of £3,824 for a full-time employee in the island who moved from the minimum wage to the living wage.