USVI Minimum Wage Increases
Effective April 24, 2026, the minimum wage in the Virgin Islands goes from $10.50 to $12.00 per hour. That’s under Act No. 9069, and it applies to all covered employers starting that day. No grace period. No exceptions.
If you have employees earning between $10.50 and $11.99 an hour right now, you need to act before April 24.
What Changed and What’s Coming
This isn’t a one-time adjustment. The VI Legislature set a three-year schedule to increase the USVI minimum wage under Title 24, Chapter 1, Section 4(a) of the Virgin Islands Code:
$12.00 effective April 24, 2026.
$14.00 effective June 1, 2027.
$15.00 effective June 1, 2028.
After June 1, 2029, the Wage Board takes over and sets the USVI minimum wage rate based on economic data.
You have about 13 months before the next increase. Plan for all three now, not one at a time.
What About Tipped Employees?
The law sets the tipped minimum at 40% of the USVI minimum wage. Here’s how that tracks across the full schedule:
| Effective Date | Minimum Wage | Tipped Minimum (40%) |
|---|---|---|
| Before April 24, 2026 | $10.50/hr | $4.20/hr |
| April 24, 2026 | $12.00/hr | $4.80/hr |
| June 1, 2027 | $14.00/hr | $5.60/hr |
| June 1, 2028 | $15.00/hr | $6.00/hr |
The tipped rate is a floor, not a ceiling. If an employee’s direct wage plus their actual tips don’t add up to the full minimum wage, you make up the difference. Every pay period. No exceptions.
One note: VIDOL’s current employee-rights poster listed $4.80 as the tipped rate while still citing $10.50 as the minimum. That math doesn’t add up. Download the updated poster from vidol.gov after April 24 to make sure you’re posting the right version.
Your Compliance Checklist
Before April 24, go through this list:
- ✅ Update hourly rates for anyone currently earning between $10.50 and $11.99
- ✅ Review salaried positions calculated against hourly equivalents
- ✅ Recalculate tipped employee floors — the new tipped minimum is $4.80/hr
- ✅ Post the updated VIDOL minimum wage notice where employees can see it
- ✅ Update your payroll software — mainland tools won’t know about this change
- ✅ Notify employees of their new rate in writing before the effective date
- ✅ Update your 2026–2028 labor budget — $14.00 is coming in June 2027, $15.00 in June 2028
What Happens If You Don’t Comply
Failure to comply is a violation of Virgin Islands law. The Department of Labor can investigate and fine employers up to $2,500 per violation. VIDOL launched an active “$12 by April 24: Prepare. Comply. Empower.” campaign, so enforcement is front of mind right now.
Back wages, penalties, and investigations cost a lot more than just updating a pay rate.
How Lasinja Handles This
When the USVI minimum wage rates change, you update the affected employee rates in Lasinja once. Every calculation downstream — gross pay, withholding, 941VI, VIESA — adjusts automatically. No spreadsheet hunting. No wondering if you caught everyone.
If you’re still doing this manually or with a tool that doesn’t know what a 941VI is, this wage change is a good time to ask: is this system actually built for us?
Lasinja is the only payroll platform built specifically for the Virgin Islands. Sign up for Lasinja today.