Tynwald's formally approved the new minimum wage rate.
This week's announcement follows on from last month's vote by MHKs to approve a lower, five percent rise.
That was a reduction from the previously planned 9.9%, following a government u-turn.
Now from Wednesday, April 1 the hourly rate will be £12.86.
And the youth rate for school leavers below 18 years will also go up to £10.16 per hour.
Two ferries cancelled today, and more disrupted on Sunday
Two Sunday ferry sailings cancelled and two more at risk
Racers' leather company in liquidation
Two Saturday ferries cancelled, four rescheduled
Mountain Road partly reopens from this afternoon
U2 singer's daughter to star in TT film
Thank you for not stockpiling fuel, says government