The government has come under fire for failing to ensure the Manx minimum wage matches rates in the UK and Ireland.

Bill Shimmins (Middle) told Tynwald last week: ’The Manx minimum wage for workers 21 years and above is £7.20, compared to the higher rate in the UK of £7.38.

’For those 25 years and over it is £7.50, which is again lower than the UK hourly rate which is £7.83.

The rate in Ireland is higher still, at £8.45 per hour.’

He added: ’What message does this send to the low paid workers here who are considering whether or not to stay or move to the neighbouring islands, where the minimum wage is higher?’

Enterprise Minister Laurence Skelly confirmed it was an aim of the government to ensure the top rate minimum wage in the Isle of Man was at least the same as the UK.

He also revealed that the formula for setting rates based on age categories was being reviewed.

By law, the Treasury and Department for Enterprise must consult the minimum wage committee before making any changes.

The committee was due to make its latest recommendations soon, the minister said.

Mr Skelly added: ’The review process has to balance the desire for an increased minimum wage for all against the commercial needs of our domestic businesses.’

The minister said he had asked the committee to look into the prescribed list of factors of that need to be considered when setting the minimum wage, to see if they need to be updated.

’I have also specifically asked the committee to review the age-based minimum wage categories.’

But concern over different rates for age categories had to be balanced against other issues such as the use of apprenticeships, he said.

Groundhog Day

Mr Shimmins welcomed the positive words and an acknowledgement that a higher minimum wage could benefit to the economy.

But he was not won over entirely by Mr Skelly’s response.

He remarked: ’It does feel it is a bit like Groundhog Day. It is quite a similar discussion that we had last year.

’Will the minister confirm that we will not be having this conversation again next year and that our rates will not be below both the UK and Ireland?’

Mr Skelly said the aim was to have at least parity with the UK, but political will had to be balanced against ’economic reality’.

He warned: ’What we do not want is to push employers into more zero-hour contracts and less employment.’