Country Payroll Guide Isle of Man

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Key Facts

Capital
Douglas
Date format
dd/mm/yyyy
Currency
Isle of Man Pounds (IMP)
VAT
the standard rate is 20%

Contributions

Employers

National Insurance

Rates depend on individual’s circumstances.

Total Employment Cost

Dependent on individual’s circumstances.

Employees

0% – Where earnings are less than 138 IMP per week.

11% – Where earnings are more than 138 IMP per week.

 

Total Employee Cost

Up to 11%.

Minimum Wage

Minimum Wage
The minimum wage in Isle of Man is £8.25 per hour.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Up to 6500 IMP - 10%
Employee Income Tax (2)
Over 6,500 IMP - 20%

Working Hours

General Working Hours

40 hours per week.

Overtime

Civil servants (other than those who have no set conditioned hours) are eligible to be paid overtime. Overtime working should only occur during periods of exceptional pressure of work and only then, at the request of management.

Leave

Paid Time Off

Four weeks.

Public Holidays

10 days.

Sick Days

Any amount of sick pay paid by an employer for a period in which the employee was absent due to sickness must be subjected to ITIP. Any monies recovered from the employee in respect of that period, e.g. the whole or part of the statutory sick pay received by the employee or recovered by way of a pay-out under an employee sickness insurance policy, must be recorded as a trading receipt. If sickness benefit is paid to the employee under the National Insurance Act, the employer should not treat it as remuneration.

Maternity Leave

All pregnant employees are entitled to take up to 26 weeks’ leave providing that certain notice requirements are met.

Paternity Leave

Paternity leave of one or two weeks is available within 56 days of the birth of the baby. There are no requirements for employers to pay employees on paternity leave.

Parental Leave

There are no statutory laws regarding parental leave.

Other Leave

Compassionate / Bereavement Leave – up to 10 days paid leave.

Termination

Termination Process

Reasonable cause and a notice period must be provided.

Notice Period
  • One month or more, but less than two years – one week’s notice
  • Two years, but less that four years – one week for each year of continuous employment
  • Four years or more – four weeks
Severance Pay

The amount of a redundancy payment is one week’s gross pay for each complete year for which the employee has been continuously employed. A week’s pay is capped at a maximum of £480 a week.

Probation Period

6 months.

Visa

Employment Visa

Anyone who is not classed as an ‘Isle of Man worker’ requires a work permit to take up employment.