Payroll and Benefits Guide British Virgin Islands (UK)
Last updated: May 03, 2023
Employer Payroll Contributions
Social Security (maximum insurable earnings $47,000.00)
Health Insurance (employer and employee pay contributions toward national health insurance at a rate of 7.5 per cent of the employee’s salary split equally between the employer and employee.)(maximum insurable earnings $47,000.00)
Total Employment Cost
Employee Payroll Contributions
Social Security (maximum insurable earnings $47,000.00)
Health Insurance (employer and employee pay contributions toward national health insurance at a rate of 7.5 per cent of the employee’s salary split equally between the employer and employee.)
(maximum insurable earnings $47,000.00)
Total Employee Cost
Employee Income Tax
10% – 14%
Depending on the size of the company and operations, payroll tax will be assessed at 10% (if employing less than seven people) or 14% of total annual remuneration paid to the employee or deemed employee; 8% may be deducted from the employee at source, whereas the remainder is paid by the employer or self-employed person.
No deduction shall be made in respect of the first 10,000 USD of actual remuneration paid to an employee in any financial year (which currently corresponds with the calendar year).
The national minimum wage in the British Virgin Islands is currently 6 USD per hour, 460 USD per month.
MINIMUM WAGE (PER MONTH)
The payroll cycle in the British Virgin Islands is generally monthly, and payments are to be made on the last working day of each month.
In the British Virgin Islands, 13th-month payments are mandatory, and an employee must pay an additional month’s salary at the end of the year.
The standard working week in the British Virgin Islands consists of 40 hours, 8 hours per day for five days.
All work above the standard working hours a week is to be paid as overtime and regulated by employment contract/collective agreements etc. When an employee is requested to work overtime or work on holidays, there is a maximum of 4 hours per day.
Overtime hours more than 40 hours a week are paid at the rate of 150.00% of the employees’ regular pay rate.
Paid Time Off
In the British Virgin Islands, the paid annual leave entitlement depends on the years of service that the employee has served. The paid leave entitlement is typically between 12 and 20 days.
An employee can claim up to 12 days paid sick leave providing they have worked for the same employer for four months; the employee must provide a certificate of sickness on the first day of sickness. Eligible employees receive social security benefits while on leave.
Female employees are entitled to 13 weeks of paid maternity leave after 12 months of continuous employment. Employees can take at least six weeks of leave after the expected due date. The leave can be taken at least six weeks after birth and can be extended up to three months in the event of a pregnancy-related illness. Eligible employees receive maternity benefits/maternity allowance from the social security ordinance while on maternity leave.
In pregnancy-related complications, the employer can provide additional leave of no more than three months.
PAID MATERNITY LEAVE (DAYS)
In The British Virgin Islands, fathers of new-born child/children are entitled to unpaid paternity leave of one month to be used before the child is six months old.
There are no provisions in the law regarding parental leave.
In the British Virgin Islands there is no other statutory leave.
The termination process varies according to the employment agreement and collective agreement in place and based on the type of contract and reason for termination.
In the British Virgin Islands, the notice period is 15 days, and all official notice must be provided in writing.
In accordance with the British Virgin Islands Labor Code, Severance pay is paid at the rate of one week’s regular salary rate for each year the employee has worked for the company. The employee also receives vacation payment which is 30 days for every 11 consecutive months worked, together with an element from any applicable 13th-month payments.
In The British Virgin Islands, probationary periods of 4 months are common but can be extended up to 6 months for more senior employees.
British nationals do not need a visa to visit the BVI. However, to work in The British Virgin Islands, work permits are required for all non-BVI citizens and are typically allocated on a one or two-year basis.
To secure a work permit, eligibility for admission in The British Virgin Islands needs to be fulfilled, including providing the correct and complete required documentation and the requirement for the employer to have satisfied the authorities that they have been unable to source an appropriate candidate locally. The work permit and immigration approval process can take up to 10 weeks from the date of submission to the Labour Department.
If the position is a senior position in the financial services sector, additional approval from the BVI Financial Services Commission will be required before applying for a work permit.
There is no VAT in the British Virgin Islands.
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Questions & Answers
Payroll and Benefits Guide
in British Virgin Islands (UK)
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
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