Employee Relocation IncentiveSupporting the relocation of staff to the Isle of Man:
the Employee Relocation Incentive, an Isle of Man Government initiative to support Manx businesses.
Local support for employers looking to recruit off-Island
In late 2016, the Department for Enterprise launched a relocation initiative called the Employee Relocation Incentive (ERI) to support Isle of Man employers looking to bring new employees to the Isle of Man. With an ever-growing economy, the scheme was designed to encourage job growth on Island and the importation of skills. The Department and wider local Government were keen to create as few barriers and blockers as possible, to ensure the necessary skill gaps were filled.
What is the Employee Relocation Incentive?
Put simply, the ERI provides a grant of up to £10,000 towards the cost of relocating an employee to the Isle of Man. The grant, which goes towards the cost of a relocating employee’s first year net salary (the minimum salary must be £25,000) helps local employers find additional, skilled workers, ensuring they find continued growth and success in the Isle of Man.
The assistance is provided to the business retrospectively, after the first year of employment. It is often used to assist with relocation costs, incentivising the business to provide a relocation package for the employee; however, others have used the grant to reach suitable off-Island candidates or meet the costs of using recruitment agencies.
Success year on year
Initially launched in 2016 as a 12-month pilot scheme, the ERI has been extended year on year due to popularity and its effectiveness in helping local businesses recruit skilled workers to the Isle of Man.
In the last five years the scheme has helped local businesses secure over 400 new employees who have relocated to the Isle of Man, across a range of sectors including eGaming, ICT, hospitality, financial services, construction and manufacturing to name but a few.
Other Government support for the importation of skills to the Isle of Man
The ERI forms part of a wider suite of financial support offered by the Isle of Man Government in supporting the importation of new skills to the Island.
Similarly, the Graduate Role Incentive (GRI) provides financial assistance to businesses looking to create new graduate roles, with support including funding of up to £6,000 of the graduate’s first-year salary and an employer National Insurance rebate for each graduate hired through supported roles. The scheme, which was implemented to encourage the expansion of the Island’s graduate workforce, not only stimulates local job creation, but encourages new or returning graduates to move to the Island, while supporting local businesses in growing their workforce.
Another scheme, which is aimed at relocating employees is the National Insurance Holiday Scheme. Established in 2019, the relocation incentive provides a refund on National Insurance contributions paid in the first 12 months of employment. The scheme is eligible to individuals that have relocated to the Isle of Man for employment, have not been tax resident in the Island for the immediate last five years, and earn a gross salary of £21,000 or more. The National Insurance contribution refund is capped at £4,000.
Anthony O'Mahony, Chief Financial Officer at J5 International who accessed the Employee Relocation Incentive, commented:
“The Department for Enterprise helped us secure the relocation of an employee from our Cape Town Office. We were unable to fill the position locally and needed the experience and knowledge of this software developer to be based here on Island. The Employee Relocation Incentive helped J5 International support the employee with relocation costs and enabled us to retain this talent internally. We are currently in the process of accessing the Scheme for another employee relocation”.