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.
Castletown police station could be yours... for £250,000
Fancy owning a landmark building in the south of the Island?
Brewery advertising for operator for landmark Laxey pub
Could you run one of Laxey's best-known pubs?
Hospice cafe reopens next week after refurb
A much-loved café will be throwing open its doors again next week.
Another one bites the gust - as Ramsey rocks cancelled
A huge live music event in Ramsey this weekend has been cancelled.
Mountain Road closed again after crash
The Mountain Road is currently closed after a crash.
Merchant Navy Day to be marked with memorial service
Merchant Navy Day will be marked on Island with a remembrance service for those who lost their lives at sea.
Fundraiser launched for injured MGP rider
A fundraiser's been launched to raise money for a Czech rider who was injured during the MGP.
Noel back in the saddle after handy pub pumping leaves him smiling
Noel Edmonds has thanked a pub in the north of the Island for helping out when he felt a little deflated.
