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Minimum Wage Committee to undertake further assessment into impact of potential rate increase

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The Minimum Wage Committee (‘the Committee’), an independent committee constituted of employer and worker representatives, commenced their review into the rates of minimum wage in the Isle of Man in October 2023. Following initial consideration of input received, assessment of available data and further deliberation, the Committee has requested support of both the Department for Enterprise and Treasury to conduct a more detailed impact assessment before recommending changes to the current rates.

The Department, acting jointly with Treasury, had intended to determine proposals for increases to the rates of the Minimum Wage during January following receipt of the recommendations of the Committee, seeking Tynwald approval in February and, subject to such approval, aiming for an implementation date of 1 April 2024.

Minimum Wage legislation in the Isle of Man places a statutory obligation on both Departments to consult with the Committee, and consider any recommendations made by it, prior to bringing forward proposals for Tynwald approval.

Following the request of the Committee for support in undertaking a further impact assessment, the Department has requested further details in respect of the scope for such an assessment and is awaiting a response in order to progress.

In the absence of a recommendation from the Committee, the Department and Treasury are unable to bring forward proposals at this time. As such, there will be a delay in seeking Tynwald approval and the subsequent implementation of revised Minimum Wage rates.

Whilst this clearly will be of concern and disappointment to some, the Committee has a statutory responsibility to consider the social and economic impact of any potential recommendation in respect of the rates of the minimum wage and, as such, their request for additional time to understand the potential impact must be appropriately considered.

The Department for Enterprise and Treasury will confirm the expected revised timeline for final Minimum Wage proposals as soon as possible following confirmation of the scope of work to be undertaken by the committee.