Workers on the Isle of Man have expressed support for a proposed 9.9% increase in the minimum wage, which would raise the hourly rate from £12.25 to £13.46. This increase is being discussed in the Tynwald assembly this week. Some workers, like fast food employee Hassan Ali Tipu, believe this rise would assist in managing rising living costs. Conversely, Matilde Liso, who works in a coffee shop, raised concerns about the potential for an increase in prices across the board in response to the wage hike.
The proposed increase is grounded in 66% of the median earnings reported in the Isle of Man Earnings Survey for 2025. This method of calculation was endorsed by Tynwald members earlier this year, replacing a prior commitment to align minimum and living wage rates by 2026. However, the Minimum Wage Committee has expressed apprehension regarding the financial impact on businesses, as highlighted by the Isle of Man Chamber of Commerce, which warned of possible business closures and job losses.
Employees have shared varied perspectives. Tipu noted that while the proposed wage increase could help individuals cope with rising expenses, it could also lead to higher prices for consumers. Liso acknowledged the potential benefits of the increase but emphasized the need for wage growth to match control over living costs, expressing concern that the increase might not be sufficient if other costs rise correspondingly.
Cafe owners Ian and Jonathan Corlett criticized the size of the proposed rise, stating it might be unmanageable for small businesses. They questioned the rationale behind using median earnings for the increase, suggesting it skews perceptions due to the high salaries in the public sector. They highlighted the necessity for efforts to reduce the overall cost of living in conjunction with wage increases.
The Minimum Wage Committee acknowledged the potential unsustainability of the rise for many low-paying employers, signaling a need for further dialogue on the implications of the wage increase for both workers and businesses.
Source: https://www.bbc.com/news/articles/c4gzp0ypd60o?at_medium=RSS&at_campaign=rss