Virgin Islands

Virgin Islands PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Virgin Islands to companies willing to enter the Virgin Islands market or recruit local/expat employees in this area.

Traditional approach requires establishing a subsidiary in Virgin Islands.  However our Employer of Record solution allows you to start the operations in Virgin Islands within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Virgin Islands fast facts

Population, million: 104,425
Land area, sq. km: 346.4 km²
Capital: Charlotte Amalie
Local currency: United States Dollar (USA)

GDP per capita:$ 34,246
GDP in currency:$1.028 billion
Economic growth percentage: 2.1%
Inflation rate (consumer prices): 3%
Volume of export: $ 198 million
Import of goods and services: $ 300 million
Total population: 104,425
Population of working age (15-64): 54.9%

The British Virgin Islands (abbreviated BVI), officially the Virgin Islands, are a British Overseas Territory in the Caribbean, to the east of Puerto Rico and the U.S. Virgin Islands and north-west of Anguilla. The islands are geographically part of the Virgin Islands archipelago and are located in the Leeward Islands of the Lesser Antilles and part of the West Indies.

The British Virgin Islands consist of the main islands of Tortola, Virgin Gorda, Anegada, and Jost Van Dyke, along with more than 50 other smaller islands and cays. About 16 of the islands are inhabited. The capital, Road Town, is on Tortola, the largest island, which is about 20 km (12 mi) long and 5 km (3 mi) wide. 

British Virgin Islanders are British Overseas Territories citizens and since 2002 are British citizens as well.

Hiring, Negotiating and Doing Business in Virgin Islands

Necessity of written employment contract

An employer and employee may enter into an individual employment contract, either written or oral, which specifies conditions of employment, but any provision which

  • establishes conditions which fall below the minimum employment standards established by the Code; or
  • requires that the employee refrain from associating with other employees or with a trade union for collective bargaining purposes, is void.

Virgin Islands Employment Contract

Types of employment agreements

Subject to any applicable work permit, where an employment contract for a fixed term is renewed on one or more occasions so that the total period involved is twelve months or more, such contract shall, for the purposes of the Code, be deemed to be for an indefinite period.

Virgin Islands working hours

The normal working hours are 8 hours a day and 40 hours per week. 

Overtime

Overtime must be paid, with some exceptions, in the amount of one and a half hours.

Vacation leave in Virgin Islands

An employee who has successfully completed his or her probationary period is entitled to vacation leave as follows:

  • twelve normal working days leave for employees with less than ten years service
  • fifteen normal working days leave for employees with ten and less than twenty years service
  • twenty normal working days leave for employees with twenty or more years service.

Sick leave

15 days.

Virgin Islands Maternity Leave

Maternity leave:  66.7% of the insured’s average weekly covered earnings in the 39 weeks before the expected date of childbirth is paid for up to 13 weeks, beginning no earlier than six weeks before the expected date of childbirth.

Virgin Islands Severance Laws

Termination Process

The default is 2 months, but can be changed to the employers liking.

Notice Period

24 hours’ notice for employees on probation
2 weeks’ notice for employees who are paid fortnight and have been employed for more than 7 years
1 months’ notice for employees who have been employed for more than 7 years but less than 15 years
2 months’ notice for employees who have been employed for more than 15 years

Severance Pay

Severance pay is counted at the rate of one week’s wages for each year the employee has worked for the company. The employee also receives vacation payment which is 30 days for each 11 consecutive months worked. Additionally they receive the 13th month payment.

Virgin Islands Tax

Income tax in the BVI is zero-rated and no individual is taxed unless gainfully employed in the BVI. Payroll tax and social security is charged on every self-employed person or employer who carries on business in the BVI. Payroll tax at the rate of 10 per cent is chargeable for small employers and up to 14 per cent of remuneration for large employers. Eight per cent of the total remuneration may be reclaimed from the employee. Employees also pay 4 per cent social security contributions and employers pay 4.5 per cent. The first US$10,000 of remuneration is free from payroll tax.

Health Insurance Benefits in Virgin Islands

The National Health Insurance (NHI) program covers a comprehensive package of primary, secondary, and tertiary care. Benefits include preventive care, diagnostic procedures, outpatient care, hospitalizations, surgery, acute and intensive care, medicine, mental health services, dental and eye care, prostheses, and rehabilitation.

Cost sharing: No copayment is required for medical treatment at community health clinics within the NHI network. Copayments vary depending on whether the providers are in the NHI network and whether they are local or overseas: 5% for the local public hospital; 10% for local providers in the NHI network; 20% for out-of-network local providers and overseas providers in the NHI network; and 40% for out-of-network overseas providers.

Virgin Islands Holidays

  • New Year’s Day
  • Hamilton Lavity Stoutt Holiday
  • Commonwealth Day
  • Good Friday
  • Easter Monday
  • Whit Monday
  • Queen’s Birthday
  • Territory Day
  • Festival Monday
  • Festival Tuesday
  • Festival Wednesday
  • Saint Ursula’s Day
  • Christmas Day
  • Boxing Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Virgin Islands

  • Working hours in Virgin Islands

    The normal working hours are 8 hours a day and 40 hours per week. 

  • What are the main holidays in Virgin Islands?

    • New Year’s Day
    • Hamilton Lavity Stoutt Holiday
    • Commonwealth Day
    • Good Friday
    • Easter Monday
    • Whit Monday
    • Queen’s Birthday
    • Territory Day
    • Festival Monday
    • Festival Tuesday
    • Festival Wednesday
    • Saint Ursula’s Day
    • Christmas Day
    • Boxing Day
  • What are payroll taxes in Virgin Islands?

    Income tax in the BVI is zero-rated and no individual is taxed unless gainfully employed in the BVI. Payroll tax and social security is charged on every self-employed person or employer who carries on business in the BVI. Payroll tax at the rate of 10 per cent is chargeable for small employers and up to 14 per cent of remuneration for large employers. Eight per cent of the total remuneration may be reclaimed from the employee. Employees also pay 4 per cent social security contributions and employers pay 4.5 per cent. The first US$10,000 of remuneration is free from payroll tax.

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