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.
Illegal immigrant turned back at Manx border can't stay in UK
Bank scammers warning as calls target Island residents
Island to extend UK VAT cut on power, says Treasury Minister
Woman thanks mystery van driver after daring sea rescue
Stay off damaged slipway in Laxey, says local authority
MHK sues attorney general and returning officer over election votes
Islanders reminded to keep challenging domestic abuse beyond October