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.
Illegal immigrant turned back at Manx border can't stay in UK
An illegal immigrant who applied for asylum in the UK but later came to the Isle of Man has been told he can't stay in either country.
Bank scammers warning as calls target Island residents
The government's online security experts are warning you not to fall for scammers impersonating a bank.
Island to extend UK VAT cut on power, says Treasury Minister
Treasury Minister Michael Crowe says the Isle of Man will follow some of the UK's announcements in today's budget.
Woman thanks mystery van driver after daring sea rescue
A woman's thanked a delivery driver who leapt into the sea to rescue her beloved pet this week.
The Island's information commissioner says four in five Freedom of Information requests have been answered on time this year.
Stay off damaged slipway in Laxey, says local authority
Garff commissioners are urging people to take care on Laxey beach after it was damaged by storms this week.
MHK sues attorney general and returning officer over election votes
A former Onchan MHK is suing the returning officer and the Island's Attorney General over September's election result.
Islanders reminded to keep challenging domestic abuse beyond October
The Isle of Man Government says it's now up to everyone to challenge harmful behaviours as Domestic Abuse Awareness Month comes to an end.
