Tynwald's voted to approve a 9.9% increase in the minimum wage from £12.25 to £13.46 per hour.
The change will come into force in April next year, alongside an increase in the Youth Rate from £9.55 to £10.76.
A total of 17 MHKs were in favour of the move and seven against, whilst it was unanimously passed by the Legislative Council.
It comes after the Isle of Man Chamber of Commerce warned against the move, saying it will hit local businesses.
Should cohabiting couples get married tax breaks?
Questions about whether cohabiting couples should get equal tax rights to those who are married will be raised in Tynwald next week.
Repairs on Peel Power Station to get underway
Manx Utilities says it's hoping to start fitting replacement flues to Peel Power Station next week.
Manx Care doctor survey to be discussed by Tynwald
How will the Government respond to a damning survey by the British Medical Association?
Weather warning for snow tonight
A yellow weather warning about more freezing weather will come into force later.
MHK queries safety at primary school in Ballabeg
An MHK will raise the issue of safety outside a primary school in the south of the Island next week.
Gales put two ferry sailings at risk tonight
Two Steam Packet Company sailings overnight could be facing disruption.
Should the Island throw a birthday party for Barry Gibb?
As tourism business owner has suggested the Isle of Man hold a huge event to mark Sir Barry Gibb's 80th birthday this year.
Warning issued over icy roads
Ice and frost is causing havoc on the Island's roads this morning.
