The minimum wage for adults on the Isle of Man will increase by 35p per hour after Tynwald unanimously backed a 4.7% rise.
The hike will see the minimum amount workers over 18 can be paid move from £7.50 to £7.85 from 1 October.
The current minimum wage in the UK is £7.83, Jersey is £7.50 and Guernsey is £7.75.
The move will also end certain age restrictions, meaning all workers aged 18 and above will receive the rise.
Policy and reform minister Chris Thomas said a review of the island's living wage will follow this Autumn.
In November 2017, Tynwald introduced a living wage of £8.61 per hour - £1.11 more than the current minimum wage.
While companies are legally obliged to pay the minimum wage, it is up to managers to decide whether to offer the living wage.