New minimum wage phased to avoid cost shocks
The government will introduce the recently approved minimum wage increase in phases to avoid worsening the territory’s rising cost of living, Premier Dr Natalio Wheatley explained this week.
On May 28th, Cabinet approved an increase of the minimum wage from $6 per hour to $7.25 per hour, to take effect from July 1, 2025.
However, the Premier said a careful, staged approach is needed to balance benefits for workers with the financial impact on businesses and consumers.
“While my government believes increasing the minimum wage is necessary for low-income workers to improve their standard of living, there are also concerns that could worsen the rising cost of living,” he explained. “It is therefore necessary for the minimum wage to be increased using a holistic approach to ensure economic sustainability,” he added.
The phased introduction will follow guidance from a review conducted by the Minimum Wage Advisory Committee in April 2024.
Supporting measures
Alongside this, the government is preparing a range of supporting measures to help cushion households and businesses from cost shocks.
These include “establishing a protected basket of essential goods to create a framework for price stabilisation of food, hygiene and household items,” the Premier stated.
The government also plans to adopt “a comprehensive trade alternative partnership strategy” to diversify trade routes and supply chains, in hopes of reducing dependency on costly US imports.
Other proposed initiatives include updating consumer protection laws to better safeguard shoppers, and creating a mechanism “to review minimum wage alignment as recommended in the minimum wage report as a continuous economic assessment tool to determine wage adequacy relative to the cost of living,” Dr Wheatley said.
The Premier acknowledged concerns that wage increases could lead to unintended price increases in some sectors if introduced too rapidly without safeguards.
He described the phased approach and related interventions as “part of the government’s broader strategy to alleviate the financial pressures faced by residents due to rising living costs while considering the financial impact of business operations.”
“The government seeks to foster a more equitable and sustainable economic environment and support the well-being of workers and the financial stability of businesses across the territory,” the Premier added.
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The NO CONFIDENCE vote NEEDS to go through. This man is not qualified to manage finances or run a country. Hon Rhymer. Hon Smith. The BVI needs to be saved by you.
Someone needs to tell S!0wW@nde and Corna Lady that price increases can also be phased in as well. What a f@wk!n !d!ot
What a load of horse-hocky. Raising the minimum wage is so far over-due that it should be immediately raised to $7.25 with additional raises every six month till it is up to a reasonable rate of $12.00 an hour. The greedy landlords are going to gouge regardless, and none of the employers are going to miss any meals.
You are doing more to enshrine slavery than any colonial powers!!
A whole $1.75 , has to be introduced in phases ?
What do we get for the first increase $0.50 ???
1st phase will last 10 years. Check back then
i dont want to hear no complaints in the comments cuz yall didnt have no backbone to show up for march against all this nonsense
yall proved to the politicans that you are afraid and satisfied with the status qou.
The politicans were actually afraid of this march and tried their best to sabatoge it.
that shows we the people have some serious power but yall afraid and weak minded. It shows that they know what they’ve been doing for past decade was pure nonsense and corrupt
all them need is independence to do whatever them want now.
hopefully u will have a backbone to vote for against that!
@OMEGA ZULU Look at the timing.People trying to get to work. Think about employees priority! No protesting is going to cover their bills,even if they wanted to support the cause.
All expats who bitching about the minimum wage you have options.. so-called Locals you too have options. one is go to the expats country and set up shop.
While I agree 150% with Omega Zulu, This is the worse Government Administration I have known this Territory ever to have. What can $7.25 per Hour for Workers do in these times when Prices for Food, Rent, Child-care, Transportation are through the Roof? The Question MUST be, Where did this Boy come from? Does He have a Conscience? The Premier of this territory should be ashamed of himself.His Cabinet allowed one of his Ministers to single handedly suspend a Bill that would give the Low Income Workers a lil relief for over a year now and today, June 5th, 2025 He would have the Nerves to feel comfortable knowing that All this is taking advantage of the same people you expect to Vote you all back in Power? We then Wonder What is wrong with this territory? We are now in the Hurricane Season. People of this Territory, please Pray without ceasing. God does Not Sleep.
Truth of the matter is that the cost of living is too high for the current minimum wage. This presents two options only. Either insist on reducing the cost of living which will place obligations on businesses OR increase minimum wage to meet with cost of living. But to say that to increase minimum wage in line with cost of living will result in the increase of cost of living is a SCAM!!!! ALL businesses taking advantage of the public need to be required to maintain or reduce their prices or be named and FINED!
avoid cost shocks lol
that tell me we really got zero price control in this big “developed country”
but yea go for independence yall crazy people
Not from day one raise minimum wage to $10.00
Per hour.
And, Premier, what will you do, to mitigate, subsequent “phase in’s”:
Rent Increases
Supermarket prices increases
Doctors Offices Increases
Legal Fees Increases
Real Estate Increases
Retail Increases
Eateries Increases
..the very cost of doing business, and every
day living, in this territory?
What, exactly, will you do?
Reduce duty fees
You should work for $7.25 an hour.
Shut ato mouth. BVI a set of people without backbone
They only have strenth for putting policies aganist tgeit black Caribbean brothers abd sisters
When Heritage got permission to host the peaceful protest ahanist the hideous things going on in the Government all of you peeping behind the top of ayo building snd looking to see who march on facebook
The Premier has a right. He should never raise non
Boneless! Spineless! Peopler