Since Tynwald approved a 9.9% increase to the island’s minimum wage on Thursday evening, many small business owners have voiced their concerns - with some describing the decision as a serious blow.
Under the new rates, the single hourly minimum wage will rise from £12.25 to £13.46 from April 2025, while the rate for younger workers will increase from £9.55 to £10.76.
The rise follows repeated warnings from the Minimum Wage Committee about potential effects on employment, inflation and business sustainability.
The Isle of Man Chamber of Commerce described the decision as ‘deeply disappointing’, warning that it could place small firms under significant strain at a time when many are already facing rising costs.
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Across the island, businesses have taken to social media to express frustration and, in some cases, despair.
Whistlestop Café in Port Erin shared an image of a gravestone marked with Thursday’s date, captioned: ‘The day hospitality died.’
Its message read: ‘How do I feel for my little business this morning - let down. How do I feel for my staff this morning - let down. How do I feel for my customers this morning - let down.’
Dovecote Tea Rooms in Kirk Michael echoed the sentiment, posting that it was ‘very worrying times’ for small independent operators.
Others struck a more reflective tone. Gourmet Shakes, which recently moved from Douglas high street to Windsor Road, used the announcement to thank customers and highlight wider pressures on business owners.
‘Running a small independent business isn’t just about profit - it’s someone’s livelihood,’ their post said. ‘Behind every café, restaurant or local shop is an owner who often works far beyond normal hours, wears countless hats, and frequently earns less than the minimum wage themselves.’
They added: ‘Those extra pennies often go straight towards covering higher VAT, National Insurance and tax obligations, not into the owner’s pocket. The only real winner from these enforced increases is the government.’
Their message ended with a call for public support during the festive season: ‘Please support small local businesses… We need to come together in times like this.’
New Cod on the Block, a fish and chip shop in Onchan, also voiced concern. It said: ‘Having been involved in catering and hospitality for over 30 years, the changes and pressures post-pandemic have certainly ramped up massively.
‘While I would never argue with pay rises, when I look at the prospect of these increases along with commissioners’ rates, utilities, suppliers and rent, we could be looking at price increases of 15-20% just to cover costs.’
The post concluded: ‘Food has always been a passion of mine and I’ve always put my heart into everything I’ve done. A massive thank you to all our customers and friends for your support over the years - and fingers crossed to a few more.’
Whether through outrage, exhaustion or gratitude, the reaction from the island’s small business community makes one thing clear - many are deeply anxious about what this increase means for their future.