The island’s largest private sector employer has criticised the latest increase in the minimum wage - claiming it could lead to job losses and even companies closing down.

Brewers Heron and Brearley spoke out after Tynwald this week unanimously voted to raise the minimum wage rate for over 25s from £7 an hour to £7.50. The brewery said any increase needs to be affordable for employers.

In a statement, it said: ’As the island’s largest private sector employer, H&B has a policy of encouraging higher pay through sustainable means, through investment in staff training or from rewarding productivity.

’While we are also keen to ensure that the minimum wage is appropriate and encourages people into work, it needs to be affordable for employers.’

The brewery said the Manx employers most affected by this minimum wage rise are also the most vulnerable in the current climate - retail, hospitality, leisure, cleaning and care.

It said: ’H&B, alongside other Manx companies in these sectors, has continually advised the Isle of Man Government that, in the current economic conditions, the proposed £7.50 bracket could result in job losses, less investment in training, price increases and may even result in some Isle of Man businesses being forced to close.

The brewery added: ’Determining the minimum wage needs to be evidence-based and not politically driven.

’Furthermore, the Isle of Man should not simply follow the UK Government’s policies on minimum wage which are already proving harmful.

’The Isle of Man Government needs to listen to the practical realities faced by Manx employers and urgently needs to devise polices to offset this additional burden to avoid what could, in reality, be harmful for Manx workers.’

In Tynwald, Economic Development Minister Laurence Skelly described the increase from £7 an hour to £7.50 in a new band for those aged 25 and above as a ’positive step forward’ which was ’significant but necessary’.

There will be a 30p increase for 16- to 17-year-olds (to £5.70 an hour) and a 20p rise for those aged 18 to 20 and 21 to 24 (to £6.85 an hour and £7.20 an hour respectively).

The new rates will take effect from June 1, rather than April.

But backbencher Chris Robertshaw (Douglas East) accused the government of ’rushing its fences’ and providing too little time for businesses to adapt.

Calling for a one month adjournment, he said he had consistently argued for the minimum wage to be increased to the highest possible level but claimed the latest rise will cause disruption to the hospitality industry.

Mr Skelly said there was a case to review the remit of the Minimum Wage Committee. He said the increases were being delayed by two months to give time for industry to adapt.