Tynwald approval sought for Minimum Wage increase to £7 an hour
04 November 2015
The Department of Economic Development is seeking Tynwald approval for significant increases in the minimum wage rates.
If approved, the hourly rate for employees aged 21 and over would increase by 35p from £6.65 to £7.00, a rise of 5.3%.
Those aged between 18 and 20 and trainees over the age of 18 would see their hourly rate increased to £6.65.
Employees aged 16 and 17 would see their hourly rate increase to £5.40. For the 16 year old age band this represents an increase of 73p, over 15%.
Minister for Economic Development Laurence Skelly MHK commented:
‘The Minimum Wage is an important incentive to encourage people into work and represents part of Government’s aim to protect the vulnerable and make work pay. I believe that the Minimum Wage Committee has successfully balanced the interests of employees and employers.
‘I am pleased that the Committee has proposed a significant increase in the rate for trainees over 18. This rate has not increased since 2007 and will hopefully encourage those 18 or over to consider, or remain, in training.
‘If the Committee’s recommendations are approved by Tynwald then, given the current rate of inflation, this will mean that those workers currently on Minimum Wage rates should feel better off in real terms.’
The increases have been recommended by the independent Minimum Wage Committee to the Department of Economic Development and the Treasury. The Committee – which includes representatives from both employers and unions – were unanimous in their recommendations. Both Departments support the rises and are seeking the necessary approval by Tynwald later this month. If approved, the rates will take effect from 1st January 2016.
The proposed increases are above inflation and so represent a significant increase in real terms earnings for those affected. The annual rate of inflation, as measured by the Consumer Prices Index (CPI) for September 2015 remains at -0.8%. The main minimum wage rate also rose above inflation last year when it increased by 3.9%.