Low-paid workers in the Virgin Islands came a step closer to a
possible minimum wage increase as a special report on the matter was submitted to the government for consideration.
The move comes in the wake of Deputy Premier Lorna Smith saying in April that a boost to the $6-an-hour rate was “likely.”
The baseline wage level has not been raised since it was increased from $4 in October 2016.
Government announced yesterday that the Minimum Wage Advisory Committee, which was set up last November, had delivered its draft report to Ms. Smith, who is also the financial services minister.
The 16-person committee, with members from various sectors, conducted community outreach initiatives such as surveys and focus-group discussions.
“The committee’s efforts aimed to capture a wide range of perspectives to inform our minimum wage policy,” Ms. Smith said in a press release issued yesterday. “I am pleased to say that we had a significant response from both employees and employers.”
The committee’s appointment came after a 2022 review of social assistance in the territory by the Belgium-based Social Policy Research Institute, which concluded that the $6 wage is “well below” what is needed.
However, the study found that the speed at which rates are increased should take into account economic conditions.
‘I don’t know’
Asked about the prospects of a minimum wage rise at a press conference last month, Ms. Smith said, “Is there going to be an increase? I don’t know. It will depend on the information that we receive.”
The deputy premier also said the government would avoid imposing a wage rate that is “unacceptable” or that “will not work.”
Ms. Smith later clarified her stance by stating that an increase was “likely” but that a premature announcement could “undermine stakeholder consultation, data integrity and policy confidence” while the committee was conducting its study.
Financial hardship
The minister has acknowledged that some workers are experiencing financial hardship.
Next steps
The Ministry of Financial Services, Labour and Trade will now review the report, and its recommendations will then be presented to Cabinet for consideration, according to government.
Before the 2016 increase, the minimum wage had remained at $4 since 1999.