Virgin Islands Minimum Wage to Rise to $12 an Hour on April 24

The Virgin Islands minimum wage will rise from $10.50 per hour to $12.00 per hour on April 24, 2026, under Act No. 9069, the Department of Labor announced Friday, setting in motion the first step in a multi-year wage schedule that includes additional increases in 2027 and 2028 before shifting to Wage Board review in 2029.

Along with notifying employers and the public of the new rate, the department reminded covered employers that compliance is required beginning on the effective date and outlined the broader employee protections and labor rules that remain in effect under the Virgin Islands Fair Labor Standards Act. According to the Department of Labor, the increase takes effect ninety days after enactment of Act No. 9069. The department said all covered employers must ensure full compliance with the updated minimum wage beginning April 24. Under Title 24, Chapter 1, Section 4(a) of the Virgin Islands Code, the minimum wage schedule is set at $12.00 per hour effective April 24, 2026, $14.00 per hour effective June 1, 2027, and $15.00 per hour effective June 1, 2028. Beginning June 1, 2029, the wage will be subject to determination by the Virgin Islands Wage Board based on economic data.

The department also outlined how the law applies to tipped workers. Tourist service and restaurant employees who receive tips must be paid at a rate of not less than 40 percent of the minimum wage, or as otherwise determined under subsection (b). After 2030, the Virgin Islands Wage Board may adjust that rate based on verifiable economic conditions, within the limits established by law. The official employee-rights poster lists tourist services and restaurant tipped employees at $4.80 and states, “If the hourly wage and tips do not equal $10.50 the employer shall assure the minimum wage is paid.” Employers are also required to post the official notice where employees can read it. The poster states that overtime must be paid at time and a half the regular rate for work performed over eight hours in a day, over 40 hours in a week, and for any hours worked on the sixth and or seventh consecutive day. The poster also notes a variation for tourism and restaurant industry workers. In those industries, workers are paid overtime on the sixth and seventh day only if 40 hours were first worked during the first five or six consecutive days, and overtime on the seventh consecutive day. It further notes that in the tourism and restaurant industries, overtime is exempt on the sixth consecutive day provided 40 hours of work is not exceeded during the work week.