“We have persons in here (House of Assembly) who are business people, and they can tell you if you raise their payroll too much, they might have to lay off workers,” he said.
The decision to raise the Virgin Islands’ minimum wage from $6 per hour to $7.25 per hour was the right move, according to Premier and Minister of Finance Hon. Dr Natalio Wheatley, despite criticism from those who wanted a steeper increase.
The new minimum wage officially took effect on July 1, 2025, following years of debate over whether the Territory’s lowest-paid workers were earning enough to keep pace with the rising cost of living.
Calls had been made for the rate to increase to as much as $11 or $15 per hour, but Wheatley argued that government had to balance workers’ needs with the realities facing businesses.
“Some persons got me to be the most horrible person because they wanted it to go up to $15 or $11 or whatever else it was,” Wheatley said.
He pointed to the United States federal minimum wage of $7.25 per hour, noting that even the world’s largest economy has maintained that threshold.
“But I will remind persons that the federal minimum wage of the United States, which is the wealthiest country on the planet, is $7.25,” he stated.
Wheatley also warned that a sharp increase in payroll costs could place pressure on employers, potentially leading to layoffs or business closures.
“We have persons in here (House of Assembly) who are business people, and they can tell you if you raise their payroll too much, they might have to lay off workers,” he said. “They may have to let them go. They might have to shut down.”
The Premier’s comments suggest government remains convinced that the increase struck a balance between improving wages and protecting business sustainability.
Government has stated that, employers are reminded that failure to pay wages at or above the prescribed rate of $7.25 per hour, constitutes an offence under Section 79(1) of the Labour Code, 2010. Non-compliance is punishable on summary conviction by a fine not exceeding five thousand dollars ($5,000).
The government previously outlined that, the new wage adjustment is part of the Government’s broader strategy to alleviate the financial pressures faced by residents due to rising living costs.
It stated that, by increasing the minimum wage in a phased approach, and implementing targeted measures to support the increase, the Government seeks to foster a more equitable and stable economic environment, while supporting the well-being of workers across the territory.
The new minimum wage officially took effect on July 1, 2025, following years of debate over whether the Territory’s lowest-paid workers were earning enough to keep pace with the rising cost of living.
Calls had been made for the rate to increase to as much as $11 or $15 per hour, but Wheatley argued that government had to balance workers’ needs with the realities facing businesses.
“Some persons got me to be the most horrible person because they wanted it to go up to $15 or $11 or whatever else it was,” Wheatley said.
He pointed to the United States federal minimum wage of $7.25 per hour, noting that even the world’s largest economy has maintained that threshold.
“But I will remind persons that the federal minimum wage of the United States, which is the wealthiest country on the planet, is $7.25,” he stated.
Wheatley also warned that a sharp increase in payroll costs could place pressure on employers, potentially leading to layoffs or business closures.
“We have persons in here (House of Assembly) who are business people, and they can tell you if you raise their payroll too much, they might have to lay off workers,” he said. “They may have to let them go. They might have to shut down.”
The Premier’s comments suggest government remains convinced that the increase struck a balance between improving wages and protecting business sustainability.
Government has stated that, employers are reminded that failure to pay wages at or above the prescribed rate of $7.25 per hour, constitutes an offence under Section 79(1) of the Labour Code, 2010. Non-compliance is punishable on summary conviction by a fine not exceeding five thousand dollars ($5,000).
The government previously outlined that, the new wage adjustment is part of the Government’s broader strategy to alleviate the financial pressures faced by residents due to rising living costs.
It stated that, by increasing the minimum wage in a phased approach, and implementing targeted measures to support the increase, the Government seeks to foster a more equitable and stable economic environment, while supporting the well-being of workers across the territory.
Community
Comments
Join the conversation
Your comment will appear after review. Your email is optional and will never be shown publicly.