[Isle of Man] Call to support overhaul of minimum and living wage processes

In the Isle of Man next month, several proposed changes to how minimum and living wages are calculated will be voted on by members of Tynwald, BBC News reports.

A review of the current methodology has been published by the Department for Enterprise (DFE).

The latest minimum wage adjustment, putting the current hourly rate at £12.25, was agreed by Tynwald in February.

The non-compulsory living wage is £13.74 per hour, a rise of 69p from the previous year.

Eight recommendations have reportedly been made in the DFE review.

It suggested that the island's minimum wage should in future be set as a percentage of the Isle of Man's median earnings. The recommendation is that it should be set at 66 per cent of median earnings.

The DFE review calls for the proposed rate to be submitted to Tynwald for approval by October. If agreed, it would be implemented from April.

The Manx government has previously detailed its aim for the minimum wage to align with the living wage. However, this was put on hold pending the DFE review and its recommendations being debated in Tynwald.

Treasury Minister Alex Allinson said, "When Tynwald stated the ambition of delivering parity between the minimum wage and living wage by 2026, no one was aware of the significant challenges businesses would face, including increased inflationary pressures."

The recommendation to focus on setting the rate against median earnings was "in line with neighbouring jurisdictions", Mr Allinson added.

He reportedly said that setting an annual target of Tynwald approving minimum and living wages by October each year would ensure "businesses have enough notice to prepare" for their introduction from the following April.

Source: BBC News

(Quotes via original reporting)

In the Isle of Man next month, several proposed changes to how minimum and living wages are calculated will be voted on by members of Tynwald, BBC News reports.

A review of the current methodology has been published by the Department for Enterprise (DFE).

The latest minimum wage adjustment, putting the current hourly rate at £12.25, was agreed by Tynwald in February.

The non-compulsory living wage is £13.74 per hour, a rise of 69p from the previous year.

Eight recommendations have reportedly been made in the DFE review.

It suggested that the island's minimum wage should in future be set as a percentage of the Isle of Man's median earnings. The recommendation is that it should be set at 66 per cent of median earnings.

The DFE review calls for the proposed rate to be submitted to Tynwald for approval by October. If agreed, it would be implemented from April.

The Manx government has previously detailed its aim for the minimum wage to align with the living wage. However, this was put on hold pending the DFE review and its recommendations being debated in Tynwald.

Treasury Minister Alex Allinson said, "When Tynwald stated the ambition of delivering parity between the minimum wage and living wage by 2026, no one was aware of the significant challenges businesses would face, including increased inflationary pressures."

The recommendation to focus on setting the rate against median earnings was "in line with neighbouring jurisdictions", Mr Allinson added.

He reportedly said that setting an annual target of Tynwald approving minimum and living wages by October each year would ensure "businesses have enough notice to prepare" for their introduction from the following April.

Source: BBC News

(Quotes via original reporting)