BVI’s minimum wage increasing to $8.50 per hour
Following a public outcry, the Government of the Virgin Islands has officially announced an increase in the minimum wage in the territory, which will become effective by the end of November this year.
Deputy Premier and Minister for Financial Services and Labour, Lorna Smith, stated that the minimum wage will increase from $6 per hour to $8.50 per hour.
“This decision reflects our commitment to fostering a robust economy that benefits all stakeholders,” Smith said. “By implementing this balanced approach, we aim to enhance worker welfare while fortifying our businesses for long-term sustainability.”
This increase means that minimum wage earners working a standard 40-hour work week will see their fortnightly wages rise from $480 to $680, resulting in an additional $200 every two weeks.
The increase follows a 2023 report on Social Assistance in the BVI that recommended increasing the territory’s minimum wage.
The Minimum Wage Advisory Committee completed a draft report on the minimum wage earlier this year, which was submitted to the Cabinet for review. The final decision was scheduled to be made by early August, but it was announced today on July 11, 2024.
Vincent Wheatley, the then-Minister of Labour who is now the Minister of Health, explained that a study conducted in 2014 recommended revising the minimum wage every five years, which would have placed the next revision in 2019. However, circumstances delayed this increase.
Many argue that the territory’s low minimum wage discourages some locals from seeking employment. They also believe that the low minimum wage is a key reason business owners find foreign hires attractive, especially those from economies that perform below that of the BVI.
The last minimum wage increase occurred in October 2016, rising from $4 per hour to $6 per hour under the previous National Democratic Party administration.
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Businesses hire the right fit, right attitude, right skillset that enables them to be successful and thereby making a profit. Nobody starts a business just to give out jobs and lose money.
Exactly. Now if an employee comes with a customer or two as part of their qualities and skills now that makes an employee a true asset. These laws and regulations are often past by people with no business skill or knowledge and primarily motivated by votes
This was absolutely needed. This should also be incremented over time maybe eventually to $10. That would be a descent living wage for all. Gives the younger folks more opportunity and less chance to get mixed up in u ethical activities.
This could encourage employers to acquire more automation and robotics, especially in mature industries. Seems like Luarna in the Corna, the 70 yr wonder girl, was just trying to get votes and in so doing shot the job market in the leg. Nice move Luarna
The increase is overdue and, in my opinion, not enough, but it’s a start.
Employees need to continue to ensure that their employers pay their NHI, SSB and Payroll Tax, as I suspect that more will be tempted to avoid these costs. And the Government needs to prosecute those firms who do not hand over these sums to Government. There’s no excuse not to.
Correction….
Government and by extension each entity needs to ensure that these fees are paid in by the Employers.
The employee has no control in the matter beyond what their payslip says. Put the onus where it belongs.
All these entities know exactly who is registered and under what business/employer. Stop pushing the payment of these fees on the employees.
This is long overdue but feel it could be more, possibly $10. Now I hope something is put in place to stop employers holding onto NHI Payments and SS Payments from employee wages. Its theft and should be treated as such.
watch all Greed, Price Gouging, hell and damnation to wards even more unreasonable profits break out now.
This a kudos for the government on this one, bbut the businesses will not allow the people to keep a cent of it.
Every item across the board will be marked up 1000%
Looks like im going to have to cut my workers hours. Aint no way i paying more for them.
thank god i ain’t working for you mate lol
What went on in committee stage. What was Ronnie’s position. He knows better. We were looking for a Tax exemption increase to complement that minimal minimum wage..
No Pun Intended. Is this a coincident that this report came out one Week after Peter Island held their Job Fair where Hundreds of Employees from other Properties and some unemployed person attended as the Report was slated to come out in August. I would be surprise to know that some Big Businesses were paying the bare minimum wage to their Employees
The Minimum Wage is just a Guide to say to the Employers that you cannot pay less than the Minimum. It does not automatically means that you pay just the minimum. Some Companies are paying between 7 and 8 Dollars an Hour maybe more in some cases and the Hospitality Industry this is in addition to Service Charge which varies from 12 to 20% in some cases. What is my Point? I would have considered having a different minimum wage for different Catagories of Positions. I would have increased the Payroll Tax Exemption at the same time and forthwith re-instating the Trade Consumer Bill. I am not surprised at $8.50 at least its 50 cents more than the last increase from 4.00 to 6.00. People must discipline themselves to be more frugal in their spending. Buy the need not the want.
Workers getting tips should not be included. It should be based on what the person does.
Who don’t want it , I will be happy if you give it to me ( thanking you in advance )
Mininum wage with out price control will mean nothing
What about pensioners ? How are they going to cope with the hike in prices after the wage increase .
They use our money to build houses at Joe Hill to fishers and farmers .
Where is our raise ? This is murderous behavior in every way .
Social Security needs to increase its yearly percentage on our benefits .
Mr Premier please look into this . Send HELP !!!