[Isle of Man] 9.9% minimum wage hike 'represents a national crisis'

The Isle of Man Chamber of Commerce has stated that the potential consequences of a forthcoming 9.9 per cent hike in the Isle of Man's minimum wage represent a "national crisis", BBC News reports.

The planned increase would see the hourly minimum increase from £12.25 to £13.46. Politicians approved it in October, and the new wage is due to take effect in April 2026.

The business forum, which represents the interests of more than 450 businesses, wrote an open letter to the government and Tynwald calling for an urgent review.

It reportedly said an interim rise in line with the island's inflation would be more sustainable for employers and employees alike, adding that adopting a UK-inspired approach in future would be more "stable".

The 9.9 per cent rise is based on 66 per cent of the median earnings recorded in the Isle of Man Earnings Survey Report 2025. That basis for calculating the increase was agreed by Tynwald members earlier this year as an alternative to a previous pledge to bring the minimum and living wage rates together by 2026.

In its letter, the Chamber of Commerce said the rise would lead to job losses and business closures and that reducing April's rise to one in line with inflation "would be in the best interests of businesses and the economy".

President Claire Watterson reportedly said that it recognised "the importance of fair wages and a sustainable labour market" and supported the "long-term principle" of the agreed calculation.

However, Ms Watterson said the basis for calculating the increase could only work if based solely on the "private sector median".

She warned that, if the increase goes ahead as planned in April, lower-paid workers could potentially be "losing their jobs".

"The challenge now is to set a wage rate that protects the livelihoods of employees while keeping businesses open," she said.

Source: BBC News

(Quotes via original reporting)

The Isle of Man Chamber of Commerce has stated that the potential consequences of a forthcoming 9.9 per cent hike in the Isle of Man's minimum wage represent a "national crisis", BBC News reports.

The planned increase would see the hourly minimum increase from £12.25 to £13.46. Politicians approved it in October, and the new wage is due to take effect in April 2026.

The business forum, which represents the interests of more than 450 businesses, wrote an open letter to the government and Tynwald calling for an urgent review.

It reportedly said an interim rise in line with the island's inflation would be more sustainable for employers and employees alike, adding that adopting a UK-inspired approach in future would be more "stable".

The 9.9 per cent rise is based on 66 per cent of the median earnings recorded in the Isle of Man Earnings Survey Report 2025. That basis for calculating the increase was agreed by Tynwald members earlier this year as an alternative to a previous pledge to bring the minimum and living wage rates together by 2026.

In its letter, the Chamber of Commerce said the rise would lead to job losses and business closures and that reducing April's rise to one in line with inflation "would be in the best interests of businesses and the economy".

President Claire Watterson reportedly said that it recognised "the importance of fair wages and a sustainable labour market" and supported the "long-term principle" of the agreed calculation.

However, Ms Watterson said the basis for calculating the increase could only work if based solely on the "private sector median".

She warned that, if the increase goes ahead as planned in April, lower-paid workers could potentially be "losing their jobs".

"The challenge now is to set a wage rate that protects the livelihoods of employees while keeping businesses open," she said.

Source: BBC News

(Quotes via original reporting)