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.
Help for people who think they were mis-sold car finance?
What should people who think they've been mis-sold car finance do?
Tyson Fury explains why he moved to the Island
Boxer Tyson Fury's explained why he chose to leave Lancashire to move to the Isle of Man.
Vote which could end bus strike today
After months of industrial action, the bus strike could be set to end today.
Please park considerately for bin wagons, plead commissioners
A local authority in the north of the Island is pleading with residents to park more considerately after problems emptying bins.
Lieutenant Governor to bungee jump for charity
Lieutenant Governor Sir John Lorimer will be getting into the spirit of the Southern Agricultural Show this year - with a fundraising bungee jump!
Five sets of roadworks on one estate in six months
Infrastructure Minister Tim Crookall says an estate in Onchan has seen five sets of roadworks in the last six months.
Weather postpones council's Easter fun day
Douglas Council says it's had to postpone an event in one of its parks this week because of bad weather.
Seven ferry crossings hit by water levels and dredging issues in Douglas
The Steam Packet company has rescheduled seven ferry sailings this week.
