Phased approach likely for minimum wage increase
The long-awaited increase in the minimum wage continues to face further delays as Premier Dr Natalio Wheatley stated that a phased approach is likely to ease the burden on businesses and workers alike.
Speaking on TOLA Radio’s Morning Braff programme, Premier Wheatley assured that an increase is still on the horizon but will not be implemented all at once.
“We will see an increase in the minimum wage,” he stated. “Most likely, it will be a phased increase.” He explained that the government wants to provide businesses with enough time to adjust to the wage hike while ensuring that employees see an increase in their earnings.
“We [will] increase a certain amount, allow businesses the opportunity to adjust themselves to that amount, and then we’ll review and increase again over time,” he continued. The minimum wage in the BVI has remained at $6 per hour since 2016, and an increase was approved by Cabinet last year. The government had initially proposed raising it to $8.50 per hour by December 1, 2024.
However, Wheatley indicated that the government is still weighing the economic impact of such an adjustment, particularly on small businesses.
“We don’t just want to put all the burden on the businesses alone,” he said. “We want to share that burden.” To assist in this process, the government is exploring the possibility of increasing the tax exemption threshold from $10,000 to $15,000. “We’re looking at whether we can extend that exemption to help workers and businesses, so that government has a stake, businesses have a stake, and employees will have an easier time,” Wheatley added.
Higher consumer prices
While acknowledging the need for higher wages, the Premier noted that a sharp increase could result in higher consumer prices.
“I spoke to one particular business, which said that when they did the maths across all their businesses, the increase in the minimum wage would have resulted in about $300,000 to $500,000 in additional payroll costs,” he explained.
“Quite naturally, those costs would have to be passed on to the consumer, making things more expensive.” The government now intends to finalise its approach in the coming months. “I’ll be making an announcement sometime this month about when exactly we’re going to see an increase in the minimum wage,” Wheatley said.
He acknowledged the frustration of workers and businesses awaiting clarity on the matter but assured that the government is working towards a sustainable solution. The delay comes amid wider concerns about the cost of living in the territory.
Many residents have voiced their struggles with rising prices, making an increase in wages a pressing issue. The BVI’s last minimum wage increase, implemented eight years ago, saw rates rise from $4 to $6 per hour.
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“Sometime, this month”…
..That’s the problem, Premier.
No exact date,for such a critical pronouncement, that will improve the lives, of the working men and women, of this territory!
It was over forty years that it took for minimum wage to increase to six bucks an hour!
And here we are again, in a state of “discussion”, as to the why, of the nearly three bucks an hour, of the increase, that should have, already, taken place!
Premier, we need decisive action-date, and time, of the pronouncement, like, already!
Come on Mahhnn!!
“the increase in the minimum wage would have resulted in about $300,000 to $500,000 in additional payroll costs”
If a business cannot afford the additional $300,000 to $500,000 in payroll costs due to a minimum wage increase, it indicates that the business model is unsustainable, overly reliant on low wages, and not structured for long-term financial stability. When inflation surged due to Irma, COVID, and other price-increasing events, businesses quickly hiked prices and never lowered them—so it’s only fair to raise wages as well. Stop delaying, Mr. Premier, and bite the bullet.
We did have a date. Natalio not working for the people. Working for rich cronies that do not have real businesses. Like plantation owners they only make profit by not paying people who do the work.