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Minimum Wage


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The UK Chancellor Rishi Sunak has authorised an increase in the National Living Wage (formerly minimum wage) from £8.91 per hour to £9.50.

This will obviously have a knock on effect on employers on the island, as presently the minimum wage is £8.25. It does present an opportunity though for Government to portray the island as a high wage, high skilled economy which isn’t reliant on cheap foreign workers. It may hit the small cafes, restaurants and hotels (including bigger hotels), some may make people redundant and cut back, but after all we are supposed to be living in near full employment scenario -  if you believe IOMG spin. 

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24 minutes ago, HeliX said:

You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on.

Well the Minimum Wage is decided by a Government mandated commission. They set the rates and it’s usually rubber stamped. I would guess a lot of lobbying by the usual vested interest groups will ensure that it’s kept as minimum as possible, rather than try and get out of being a low pay economy. If the rate rises it brings people into paying more tax and NI, so the island benefits. However, some businesses are failing anyway and rely on low minimum wage rates. If they fold, it’s sad but not the taxpayers problem.

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4 minutes ago, WTF said:

odd how the minimum wage here is less than England considering the cost of living here is higher

It is. It’s another Manx Muddle, awaiting a typical Manx Solution to a Manx Problem.

The minimum wage has been allowed to stagnant, and its rate quite possibly been like a can, kicked down the road, with nobody wanting to address the issue. Alf certainly doesn’t want to discuss it and I doubt Ashy would either. When you have a huge unemployment problem, some work is better than no work. That’s the opposite here with the latest unemployment figures showing a reduction, but trying to get staff and new people to settle here is impossible. Cost of living through the roof and minimum wage is more in the UK, for those over 25. Here its 23 and over £8.25 per hour. 
 

I can see why people are packing up, there is no attraction to living here, unless the island ups it’s game. It’s too interested in climate change conferences and tynpotwald general debates instead of doing now and worrying later. 

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2 hours ago, HeliX said:

You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on.

Then there's management who also work off minimum wage. Small businesses aren't exactly raking it in at the moment

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2 hours ago, HeliX said:

You can be sure of one thing, management and execs won't take any sort of paycut to be able to pay their staff enough to live on.

To be honest why would anyone take a pay cut to give someone else more money? Especially now when many businesses have been totally decimated by the pandemic? Government would be better giving lower earners tax or NI breaks instead of asking businesses that are already operating in the most challenging economy since WW2 to take on board more wages costs. If the job market is as good as everyone is claiming it is then the people who don’t pay a decent wage wont get staff. There really isn’t any real need for government to interfere in the labour market.

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If people earn enough, they spend it in the economy, we have gradually seen our lower paid fall off the scale. Crazy contracts which leave people unable to support a family or buy a house are not clever in the long term. We end up paying benefits to support business owners who refuse to pay their staff a living wage or offer decent terms and conditions!

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5 minutes ago, offshoremanxman said:

To be honest why would anyone take a pay cut to give someone else more money? Especially now when many businesses have been totally decimated by the pandemic? Government would be better giving lower earners tax or NI breaks instead of asking businesses that are already operating in the most challenging economy since WW2 to take on board more wages costs. If the job market is as good as everyone is claiming it is then the people who don’t pay a decent wage wont get staff. There really isn’t any real need for government to interfere in the labour market.

Well, I did it because they deserved the money, I'm earning enough to spare it, and we didn't have the budget to cover the cost another way without raising prices - which I didn't want to do.

 

CEO pay is up several hundred percent in the last few decades, and minimum & average wages have hardly moved. Someone needs to interfere in the labour market.

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16 minutes ago, Peter Layman said:

Then there's management who also work off minimum wage. Small businesses aren't exactly raking it in at the moment

Or less.

Plenty of business owners paying their staff minimum wage and paying themselves absolutely nothing  or even paying out on credit cards etc to keep their staff employed 

Edited by Ramseyboi
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I don’t think the minimum wage rate has changed since 2019 (correct me if I’m wrong please) so it’s not exactly a surprise to hear we have fell behind, I think it was slightly offset by us having a higher tax threshold but this increase will certainly change things somewhat!

Any minimum wage worker would be absolutely stupid to stay here given our increased cost of living, even more so with the gas price hike.

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1 minute ago, HeliX said:

Well, I did it because they deserved the money, I'm earning enough to spare it, and we didn't have the budget to cover the cost another way without raising prices - which I didn't want to do.

How convenient of you to have done so and in such highly prescribed circumstances. There really isn’t any need for government to interfere in the labour market. It’s changing anyway. If you pay bad wages people won’t work for you and there are plenty of other jobs people can get at the moment so it’s up to employers to decide what they need to do to maintain staff. That’s why hospitality is finding it so bad as the hours are crap and there are better jobs around to do on more money. 

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Just now, offshoremanxman said:

How convenient of you to have done so and in such highly prescribed circumstances. There really isn’t any need for government to interfere in the labour market. It’s changing anyway. If you pay bad wages people won’t work for you and there are plenty of other jobs people can get at the moment so it’s up to employers to decide what they need to do to maintain staff. That’s why hospitality is finding it so bad as the hours are crap and there are better jobs around to do on more money. 

Wasn't particularly convenient!

People have been suggesting that the labour market can self-correct for decades, and wages have remained stagnant. What was the definition of insanity again?

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