[Isle of Man] Government scraps plans to align minimum and living wages

The Isle of Man Government has announced that plans to align the minimum wage with the living wage have been scrapped following "industry feedback", BBC News reports.

Under original plans, the hourly minimum rate would have risen in two phases to £12.25 from April 1 and then to £13.05 in October.

The figure will now reportedly increase to £12.25 from April 1 but remain at that level, with no further increase planned in October.

Treasury Minister Alex Allinson said that while the government was "committed to delivering the Tynwald resolution" to align wages, they also had a "duty to listen" to the concerns of peers and "the wider business community".

Initial plans, outlined in January, were questioned by the island's Chamber of Commerce who expressed concerns about the timing of such a move.

The increase to £12.25 in April represents an 80 pence bump from the current hourly rate of £11.45. The rate for under 18s will increase from £8.75 to £9.55 at the same time.

Rather than bringing in a further increase in October, the Government reportedly said it would "prioritise a review into the current methodology of agreeing proposals" and report on those findings to Tynwald in July.

Dr Allinson said Treasury would be "carrying out further work" to "meet our obligations to the lowest-paid workers in our community, while also recognising the challenge for businesses".

Enterprise Minister Tim Johnston said raising the minimum wage was "often a difficult topic", and the government was trying to "strike the right balance of increasing the safety net for low-paid workers, whilst also considering the impact on the wider economy and local businesses".

"We still have the ambition of achieving parity with the living wage," he said and stated that there were economic pressures that still needed to be considered.

Mr Johnston said there was a "need to strike the right balance", adding he hoped to continue working with businesses "to find a way forward".

Tynwald will reportedly be asked to approve the revised plans later this month.

Source: BBC News

(Links and quotes via original reporting)

The Isle of Man Government has announced that plans to align the minimum wage with the living wage have been scrapped following "industry feedback", BBC News reports.

Under original plans, the hourly minimum rate would have risen in two phases to £12.25 from April 1 and then to £13.05 in October.

The figure will now reportedly increase to £12.25 from April 1 but remain at that level, with no further increase planned in October.

Treasury Minister Alex Allinson said that while the government was "committed to delivering the Tynwald resolution" to align wages, they also had a "duty to listen" to the concerns of peers and "the wider business community".

Initial plans, outlined in January, were questioned by the island's Chamber of Commerce who expressed concerns about the timing of such a move.

The increase to £12.25 in April represents an 80 pence bump from the current hourly rate of £11.45. The rate for under 18s will increase from £8.75 to £9.55 at the same time.

Rather than bringing in a further increase in October, the Government reportedly said it would "prioritise a review into the current methodology of agreeing proposals" and report on those findings to Tynwald in July.

Dr Allinson said Treasury would be "carrying out further work" to "meet our obligations to the lowest-paid workers in our community, while also recognising the challenge for businesses".

Enterprise Minister Tim Johnston said raising the minimum wage was "often a difficult topic", and the government was trying to "strike the right balance of increasing the safety net for low-paid workers, whilst also considering the impact on the wider economy and local businesses".

"We still have the ambition of achieving parity with the living wage," he said and stated that there were economic pressures that still needed to be considered.

Mr Johnston said there was a "need to strike the right balance", adding he hoped to continue working with businesses "to find a way forward".

Tynwald will reportedly be asked to approve the revised plans later this month.

Source: BBC News

(Links and quotes via original reporting)