Minimum wage increase would have 'significant impact' on businesses says CoC

Calls for Manx politicians to consider delaying hourly rise

Any increase in the minimum wage on the Isle of Man will have a ‘significant impact’ according to the Chamber of Commerce.

If Tynwald gives the go-ahead next month it will rise from £11.45 per hour to £12.25 from 1 April

It could then rise again, to £13.05, from October.

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The chamber says whilst it’s pleased government has listened to concerns, and now proposed lower rates and a phased approach, it wants Manx politicians to consider if now is the time to increase it.

More than 500 organisations on the Island are represented by the Chamber of Commerce including small independent businesses in the retail and hospitality sectors.

A spokesperson said: “Over the past year we have seen a number of independent local firms close so the last thing anyone wants is minimum wage increases being another rising cost that leads to more businesses and jobs being lost.

“Some costs such as raw materials from the UK are beyond the Isle of Man’s control but many others such as minimum and living wage rates, VAT, Income Tax and some energy tariffs are controlled by Isle of Man Government.

“Instead of increasing the minimum wage to help those most affected by the rising cost of living there is an alternative option which is to increase the tax thresholds for lower paid workers.

“This would put more money in people’s pockets and reduce the burden on businesses – especially those in the retail and hospitality sectors which have been hit hardest over the past five years.”

The chamber adds that if the proposals to increase the minimum wage are approved in February it is ‘essential’ that government introduces increased support to help businesses ‘adapt’.

It’s asking Manx politicians to give ‘careful consideration’ to whether the time is right to increase the minimum wage or whether it could be deferred to later in the year.