Tynwald be asked next week to support a recommendation to increase the island’s minimum wage rates.

The Minimum Wage Committee is proposing that the hourly rate for employees aged 21 to 24 would increase by 20p from £7 to £7.20. Those aged between 18 and 20 and trainees over the age of 18 would see their hourly rate increased to £6.85.

Employees aged 16 and 17 would see their hourly rate increase to £5.70.

The Department of Economic Development is also proposing a new minimum wage band for workers aged 25 and above of £7.50 an hour, a 50p increase from the current hourly rate.

This would bring the island’s minimum wage for this rate into line with the UK’s national living wage.

In November 2016, the DED invited interested parties to submit their views on the minimum wage to the Minimum Wage Committee, which then submitted a series of proposals.

DED Minister Laurence Skelly said: ’A minimum wage is important to attract people into work and raise the standards of living on the Isle of Man.

’The department recognises that the increase to a rate of £7.50 will put additional pressure on some employers, however, this must be balanced with the need to move towards an acceptable living wage, ensuring the island remains competitive for job opportunities by remaining in line with the UK standard.’

Mr Skelly said the introduction of a new band will give a boost to local workers while further widening the gap between the maximum Jobseeker’s Allowance payable to an individual aged 25 or over and minimum wage take-home pay.

The new rates will come in from June 1 to provide further time for employers to plan for the changes.

Also on the Tynwald order paper next week is a motion tabled by LibVan Ramsey MHK Lawrie Hooper is calling for the 6.4 per cent increase in water rates to be shelved.

Mr Hooper is urging the Manx Utilities board to ’immediately reconsider’ the 2017/18 water rate and limit any increase to 2 per cent until the financial review of the organisation is completed.

MUA chairman Alex Allinson came under pressure in the House of Keys last week over the 6.4 per cent hike which is in line with the RPI measure of inflation rather than the lower CPI measure.

Treasury Minister Alfred Cannan has told the Examiner that the 6.4 per cent increase, which he described as ’this unforeseen development’ , demonstrated ’exactly why we have commissioned a full review into the MUA debt and financing’. This review will begin in the next few weeks.