Average earnings up: boost for lowest paid

By by Adrian Darbyshire adrian.darbyshire@iomtoday@co.im Twitter:@iomAdrian in Politics

Earnings for the 10 per cent lowest paid rose by 4.5 per cent last year .

Statistics contained in the government’s annual Earnings Survey show that average full-time earnings in the Isle of Man increased by 2.2 per cent in 2016.

And Minister for Policy and Reform, Chris Thomas MHK, said there was good news for the lowest earners.

He said: ’It is excellent that full time earnings for the lowest 10 per cent of earners have gone up 4.5 per cent and - unlike in 2015 - median earnings increased in 2016.

’Inclusive economic growth benefits everyone in their back pockets and makes it easier for government to sustain high quality public services.’

Mr Thomas said the increase in earning for the lowest 10 per cent may in part be due to the increase in the minimum wage to £7 last year. The rate is expected to rise again in April.

He continued: ’A twin track economy and slightly lower island population are issues that need addressing.

’It is vital that the Isle of Man rises to the challenge of creating high paying jobs in new sectors to make up for any lost in our Island’s more traditional sectors. The minimum wage rise last year seems to have been helpful, other government policies aimed to create opportunities for people and business seem to be having some success.’

Compiled and published by the Economic Affairs Division of the Cabinet Office, the survey provides a snapshot of earnings in June 2016 based on a random sample of employees drawn from income tax records.

It shows the average gross weekly pay of full-time employees in the sample was £685, taking into account overtime, shift premiums and bonus payments.

Median pay, the pay of the middle person had the entire population been lined up from highest to lowest, increased slightly to £537.

Overtime, incentive pay and shift premia made up 5.4 per cent of employees’ gross weekly earnings.

Average earnings in the Isle of Man were 6.4 per cent higher than those in the UK, while median earnings were 0.3 per cent lower in the island than in the UK.

Full-time employees worked an average of 37.4 hours per week, including 1.1 hours of overtime.

While average earnings are increasing, it does not necessarily mean that families are better off because the cost of living is rising.

The rate of inflation increased to 1.6 per cent last month, with the main drivers being the rising costs of housing, water, gas, electricity and other fuels, and transport.

The last Household Income and Expenditure Survey, covering the years 2012-13, revealed that the lowest quarter were spending more than they had coming in.

And the social attitudes survey published last year that about a fifth of respondents were finding it quite difficult or very difficult to cope financially.

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DocMills · 115 days ago · Report

@Grumpy Old Man - The split between private and public median income is in the final report (near the back). The average public worker earns 30% more than one in the private sector (and this doesn't include the value of the gold-plated pension.)

DocMills · 115 days ago · Report

The average pay increased by 2.2% but median only increased by 0.5%. This suggests that top earners have seen the biggest increases. Add in that the lowest 10% had a 4.5% increase and it easy to see that the Average Jo (earning between £15k and £30k) is getting s*****ed. No wonder people are leaving.

Grumpy Old Man · 115 days ago · Report

It's high time they removed government employees from this survey, that represent some 25% of the working population, and produce a separate set of data to show the disparity berween the private and public sectors. Higher than average government salaries are skewing the reality.

Bluemonday · 115 days ago · Report

"Lies, damned lies, and statistics"

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