People on the Island who work for minimum wage will see their wages increase from today.
Those aged 18 and above will now be paid £7.85 an hour.
The change was unanimously approved by Tynwald in July.
Enterprise Minister Laurence Skelly says: "We believe these changes balance the needs of employers and our working population; they position the Isle of Man as a progressive, diverse and attractive place to live and work, while simplifying guidelines for local employers.
"We will continue to work closely with the Minimum Wage Committee, Treasury and local businesses to monitor the impact of these changes."