Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in the Isle of Man.
The Isle of Man is a self-governing crown possession located in the Irish Sea off the northwest coast of England. The island has a low-tax economy with key sectors including insurance, online gambling operators and developers, information and communications technology (ICT), and offshore banking. The largest sectors by employment are "medical and health", "financial and business services", construction, retail and public administration. The government has published its national economic strategies for several emerging sectors, including aerospace, biomed, digital media, and ICT
Do your organization’s expansion plans require you to hire employees in the Isle of Man? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo - Global Payroll Services assists organizations worldwide with onboarding and managing employees in the Isle of Man- processing payroll and payroll accounting, managing local compliance requirements, benefits, and more.
Tools And Instances
Facts And Stats
Manx pound (IMP)
English and Manx
1 April (Preceding year) - 31 March (Current year)
Country Calling Code
British Summer Time (BST)
Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically effect the time and efforts that can be used in other equally important aspects of an organization's development.
Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees. Neeyamo aids you in completing all your payroll and tax accounting needs.
Earnings National Insurance Contributions (NICs)
Up to IMP 145 per week - 0%
IMP 145 to IMP 864 per week - 11%
Over IMP 864 per week - 1%
Employee Personal Income Tax
£0 - £6,500 : 10%
£6,501 - £14,500 : 20%
£14,501+ : 20%
The personal allowance for 2023/24 is £14,500 for single persons and £29,000 for jointly assessed couples. This means that the first £14,500 (£29,000 for jointly assessed couples) of your income is not taxable.
There is also a tax cap of £200,000 (or £400,000 for a married couple) on an individual Isle of Man resident's income tax liability for the five years commencing 6 April 2020. This means that no individual resident in the Isle of Man will pay more than £200,000 (£400,000 for a married couple) in income tax in any five-year period.
National insurance rate of 12.8% on all earnings above the secondary threshold of £145 per week (£629 per month).
Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature of it that provides a sense of accountability for an employee to be paid consistently for their work.
The frequency cycle is Monthly.
13th Month Cycle
There is no statutory requirement to pay the 13th or the 14th month salary.
An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance. payroll taxes, and employee benefits to comply with local tax laws and regulations.
This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.
HR Mandates and Practices
As of April 1, 2023, the minimum wage rates in the Isle of Man are as follows:
Over compulsory school age but under 18: £8.05 per hour
Aged 18 and over: £10.75 per hour.
There is no specific legislation in Isle of Man that specifies working hours for private employees.
Data Retention Policy
The data retention rules for private employees in the Isle of Man are set out in the Data Protection Act 2017, which is based on the General Data Protection Regulation (GDPR). The GDPR requires that personal data be kept in a form that permits identification of data subjects for no longer than is necessary for the purposes for which the personal data are processed.
Hiring and Onboarding Requirements
Hiring and Preferences:
Employers must comply with all relevant employment laws. This includes laws on discrimination, equal pay, and minimum wage.
Experience: Employers often prefer to hire candidates with experience in the relevant field. This is especially true for senior positions.
Qualifications: Employers may also require candidates to have certain qualifications, such as a degree or professional certification.
Skills: Employers will be looking for candidates with the skills and knowledge necessary to perform the job. This may include technical skills, communication skills, and problem-solving skills.
Personal qualities: Employers may also prefer candidates with certain personal qualities, such as a positive attitude, a strong work ethic, and the ability to work independently and as part of a team.
Documents needed for onboarding are:
Proof of identity: This can be a passport, driving licence, or other form of government-issued ID.
Proof of eligibility to work in the Isle of Man: This can be a British passport, a Manx passport, or a work permit.
Proof of address: This can be a utility bill, bank statement, or other document that shows the employee's current address.
National Insurance number: This is a unique number that is used to track an employee's National Insurance contributions and benefits.
Emergency contact details: This is the name and contact information of someone who can be contacted in the event of an emergency.
There is no specific legislation in the Isle of Man that regulates probation periods for private employees. However, there are a number of principles and best practices that employers should follow.
The purpose of a probation period is to assess whether a new employee is suitable for the role and to give them time to adjust to the new job and workplace. The probation period should be a period of mutual assessment, giving both the employer and the employee an opportunity to decide whether the employment relationship is working.
The length of a probation period will vary depending on the role and the sector, but it is typically between 3 and 6 months. During the probation period, the employee should be given clear and specific expectations about their job role and performance standards. They should also be given regular feedback and support to help them meet those expectations
The following leaves are observed in Isle of Man:
- January 2 - New Year's Day
- April 7 - Good Friday
- April 10 - Easter Monday
- May 1 - Early May Bank Holiday
- May 8 - Coronation Day
- May 29 - Spring Bank Holiday
- June 9 - T.T. Bank Holiday
- July 5 - Tynwald Day
- August 28 - Summer Bank Holiday
- December 25 - Christmas Day
- December 26 - Boxing Day
Paid annual leave: All workers over compulsory school age, including agency workers and trainees, are entitled to 4 weeks' paid leave each year. This entitlement accrues at the rate of one twelfth per month, so a worker who starts a new job in the middle of the year will still be entitled to their full 4 weeks' leave.
Public holidays: There are 10 public holidays in the Isle of Man each year. Workers are entitled to paid time off for these holidays, or to receive additional pay if they are required to work.
Pregnant women are entitled to take up to 52 weeks' maternity leave. The first 26 weeks are paid at 90% of their normal earnings, and the second 26 weeks are unpaid.
Fathers are entitled to take up to 2 weeks' paternity leave, paid at 90% of their normal earnings.
Parental leave: Parents of children under 18 are entitled to take up to 18 weeks' unpaid parental leave per child.
Adoption leave: Parents who are adopting a child are entitled to take up to 52 weeks' adoption leave, paid at 90% of their normal earnings for the first 26 weeks.
Compassionate leave: Workers are entitled to take reasonable compassionate leave in the event of a family bereavement. This leave is unpaid, but employers should be flexible and understanding.
Workers are entitled to sick leave if they are unable to work due to illness or injury. The amount of sick leave entitlement varies from employer to employer.
The minimum notice period that an employer must give to an employee in the Isle of Man is as follows:
- Less than 2 years' service: 1 week
- 2 years' service or more: 1 week for each complete year of service, up to a maximum of 12 weeks
Employees in the Isle of Man who are made redundant are entitled to a statutory redundancy payment if they have at least 2 years' continuous employment. The amount of the payment depends on the employee's age, length of service and weekly pay.
The statutory redundancy payment is calculated as follows:
- 1 week's pay for each complete year of service if the employee is under 41 years old
- 1.25 weeks' pay for each complete year of service if the employee is aged 41 to 50 years old
- 1.5 weeks' pay for each complete year of service if the employee is aged 51 to 60 years old
- 1.75 weeks' pay for each complete year of service if the employee is aged 61 to 64 years old
- 2 weeks' pay for each complete year of service if the employee is aged 65 years old or over
Weekly pay is capped at £540 for the purposes of calculating the statutory redundancy payment. The maximum amount of years to be taken into account is 26 and the maximum statutory payment is £14,040.
If a contractual redundancy payment is greater than the statutory maximum, then the contractual payment will apply.
Employees who are made redundant are also entitled to reasonable paid time off to look for work or to arrange training.
To work as a private employee in the Isle of Man, employee will need to apply for a Worker Migrant visa. This visa is for non-British and non-Irish nationals who wish to come to the Isle of Man to work for a period of up to 6 years.
To be eligible for a Worker Migrant visa:
1. Have a valid Confirmation of Employment (CoE) from an Isle of Man employer
2. Meet the salary requirements for the job you are applying for
3. Have a valid passport
4. Be able to support yourself financially during your stay in the Isle of Man
Employee Background Checks
Legal and Background Checks
There is no legal requirement to carry out pre-employment background checks in the Isle of Man, although employers may wish to do so as part of their recruitment process and apply best business practices.
If an employer does decide to carry out a background check, they must obtain the employee's consent first. They must also be transparent about the type of checks they will be doing and the purposes for which they will be using the information.
Employers can carry out a variety of background checks, including:
- Criminal record checks
- Employment verification checks
- Qualification checks
- Reference checks
- Social media checks
- Credit checks
Last updated on October 6, 2023
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