The minimum wage in the Virgin Islands will soon increase to $8.50 an hour, Deputy Premier Lorna Smith announced today.
The new baseline salary will come into effect on Nov. 30 after being held at $6 an hour for the past eight years.
“This decision reflects our commitment to fostering a robust economy that benefits all stakeholders,” said Ms. Smith, who is also the minister of financial services, labour and trade. “By implementing this balanced approach, we aim to enhance worker welfare while fortifying our businesses for long-term sustainability.”
Ms. Smith added that the move is part of a wider strategy that will also include regular wage reviews, “targeted” support for small businesses, and investment in “workforce development.”
Advisory committee
The increase follows a review of minimum wage levels by a committee appointed by Premier Dr. Natalio “Sowande” Wheatley last November.
The Minimum Wage Advisory Committee was drawn from various sectors of business and society and held outreach sessions such as focus groups and public surveys.
The appointment of the 16-person committee came after a 2022 review of social assistance in the territory by the Belgium-based Social Policy Research Institute, which found that the $6 wage was “well below” what was needed.
However, the study stated that the speed at which rates are increased should take into account economic conditions.
Previous promises
In April, the deputy premier said the government would avoid imposing a wage rate that is “unacceptable” or that “will not work.”
However, Ms. Smith also acknowledged at the time that some workers were experiencing financial hardship.
By comparison, in the United States VI, the hourly minimum wage is $10.50, and in Bermuda it is $16.40.
Until the October 2016 increase, the VI minimum wage had remained at $4 an hour since 1999.
Report
The committee’s report, which was presented to government in mid-May, will “shortly” be laid on the table in the House of Assembly and made available to the public, Ms. Smith said.
However, she didn’t provide a timeline.