Tynwald has approved a new rate of minimum wage for the Isle of Man at the February sitting, which will see the current rate increase by five percent to £12.86 per hour from 1 April 2026.

The Youth Rate, for those over compulsory school leaving age but not yet 18, will increase to £10.16 per hour.

The minimum wage has increased by 60 percent over the course of this administration, which government says reinforces the island’s commitment to fair pay while maintaining its competitiveness as a place to live and work.

It comes after Tynwald voted to support a major U-turn on the minimum wage last month, after Chief Minister Alfred Cannan told members: ‘How much more do you think businesses can take?’

Tynwald’s decision to reduce the increase to 5% was the culmination of a dramatic week for Manx politics last month which saw the sacking of two government Ministers and the Chief Minister pledging a new direction for government in its final months before the general election.

Julie Edge (Onchan) had tabled a motion calling for a two-phase increase in the minimum wage, with a 5% rise in April followed by 4.9% in November.

But Mr Cannan tabled an amendment to bring in a single 5% rise from April, together with the promise of ‘substantial’ increases to personal tax allowances in the Budget.

In parallel, changes to personal allowances in this year’s Budget will support those on the lowest incomes, which the government hope will help to lift more people out of the tax net and put more money into people’s pockets and the local economy.

A government spokesperon added: ‘The Department offers a range of support Schemes for local businesses, including funding, training, and advisory services which can be accessed to support a range of initiatives including, importantly, measures which can improve productivity and reduce costs.

‘To find out about the support available, businesses should contact the Department directly or visit dfe.im.’

The new minimum wage rate will be effective from April, 1 2026.