'Separate' Isle of Man migrant worker threshold rise defended
The DFE's plans to align the minimum wage with the living wage were put on hold earlier this year following concerns raised by businesses.But the minimum wage was increased from £11.45 to £12.25 in April, with the department also committing to reviewing how the it wage was calculated.Johnston was asked whether the minimum wage would be increased to an hourly salary of £13.05 to match the new salary threshold.He told the House of Keys the Department for Enterprise (DFE) was reviewing the current process for determining minimum wage but would not look to change the rate until the matter had been debated in July's Tynwald.
Hooper argued the change to migrant visa salary thresholds meant a company employing those workers would have to pay them a higher salary than if they employed a Manx person in the same role. But Treasury Minister Alex Allinson said the increased minimum salary threshold had been benchmarked against the living wage. The move aimed to ensure workers who moved to the island on a visa were paid an adequate salary and not seen to "undercut" Manx workers, he added.Johnston said it was an "entirely separate matter" to the statutory minimum wage and the move by the Treasury to increase the threshold was made as the figure had not been updated for some time and had fallen behind.He said the two figures were often different, citing the UK threshold of £38,000 compared to the minimum wage for a full time worker of £25,396.
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