Minimum wage rates are set to increase from April 1 following Tynwald approval at its latest sitting.

The single hourly rate is to increase to £12.25, while the youth rate will rise to £9.55.

In addition to the rises, the Department for Enterprise confirmed that work is underway with Treasury on a review into the existing process for determining proposals in respect of the minimum wage.

The review will also consider the statutory requirements prescribed in the Minimum Wage Act and the current Tynwald policy position of achieving parity with the living wage by July 2026.

Minister for Enterprise, Tim Johnston, commented: ‘Bringing forward proposals in respect of the minimum wage is always a challenging task, as we strive to enhance the safety net for low-paid workers while considering the broader economic impact on local businesses.

‘I believe that the approach Government has set out, including the increased rates approved by Tynwald last week, is the correct path to take at this stage.

‘Minimum wage workers will benefit from a seven percent increase to the headline rate from April, whilst we take advantage of the window of opportunity to review, reflect and consider if the current approach is correct.’

Discussing the ongoing review, Mr Johnston added: ‘Further details of the review will be released in the coming weeks, including how all interested parties can contribute their views.

‘The Department looks forward to engaging with as broad a range of stakeholders as possible, including local businesses and representative groups, workers, trade unions, the third sector and members of Tynwald.’

The DfE also looks to offer a range of support schemes for local businesses, including funding, training, and advisory services which look to ‘improve productivity and reduce costs’.

To find out about the support available, businesses can contact the DfE directly or visit dfe.im.