The new interim minimum wage rates, as proposed by the Department for Enterprise (DfE) and Treasury, have been approved by Tynwald and will come into effect from next Monday, July 1.

There've been calls for an increase ever since the UK's minimum wage surpassed the Isle of Man's on April 1. The new changes include the increase in the single hourly rate from £10.75 to £11.45 and the youth rate (for those aged between 16 and 17) moving up from £8.05 to £8.75 per hour.

The previous rates of were agreed in February last year. A spokesperson from the Department for Enterprise said: ‘These interim rates are a significant step towards achieving parity between the minimum wage and the living wage by April 2025, in line with the commitment outlined in our Island Plan. ‘We encourage all employers to review these changes and make the necessary adjustments.

‘These changes are made in response to interim recommendations by the minimum wage committee, which were approved last month.

‘The committee will continue to conduct an impact assessment and will present long-term recommendations to both Departments and Tynwald before the summer parliamentary recess.’

The minimum wage committee consists of an independent chair, two members representing employers and two members representing workers.

Appointments to the committee are made by the Department for Enterprise.

The current members of the committee are: Anne-Marie Weadock (chair); Stephen Bradley MBE and Bernie Murphy representing employers; and Bill Galley and Jonty Arkell (Deputy Chair) representing workers.

Speaking about the subject in April DfE Minister Tim Johnston said: ‘I am grateful to the minimum wage committee for considering proposals for an interim increase to the rates of minimum wage pending completion of the additional impact assessment and their final deliberations.

‘Government remains committed to the minimum wage reaching parity with the living wage as set out in the Island Plan, but recognise the need to consider the broader impact on businesses, particularly small businesses, in our domestic economy.’