Payroll and Benefits Guide - British Virgin Islands (UK)

British Virgin Islands (UK)
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Currency

United States Dollar (USD)
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Capital

Road Town
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Employer Taxes

8.25%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 April – 31 March

Fun Facts

The British Virgin Islands (BVI) is a British overseas territory located in the Caribbean, consisting of around 60 islands and cays.

The BVI is known for its tunning natural beauty, including white sandy beaches, crystal-clear turquoise waters, and lush green mountains.

The official language of the BVI is English, and the local culture is influenced by both British and Caribbean traditions.

The BVI is referred to as the “Sailing Capital of the Caribbean.”

The BVI is considered a tax haven and has a significant offshore financial services industry.

The BVI is home to the “BVI Emancipation Festival,” held annually in August.

British Virgin Islands

Contributions

Employee Payroll Tax

Social Security4.00%
Health Insurance3.75%
Social Security4.50%
Health Insurance3.75%

Payroll

Payroll Cycle

Payments must be made on the last working day of each month in the British Virgin Islands, where the payroll cycle is typically monthly.

13th Salary

In the British Virgin Islands, 13th-month payments are required, and at the end of the year, an employee is also required to pay a further month’s wage.

Work Hours and Week

In the British Virgin Islands, a typical workweek is made up of 40 hours, or 8 hours per day for 5 days.

Overtime

Every hour worked in excess of the required weekly hours must be compensated as overtime, as specified by the employment contract, collective bargaining agreements, etc. There is a cap of 4 hours per day when an employee is asked to work overtime or on a holiday.

If an employee works more than 40 hours per week in overtime, they will be paid 150.00% of their usual hourly wage.

British Virgin Islands

Leave

Paid Time Off

The amount of paid yearly leave an employee is entitled to in the British Virgin Islands is determined by the number of years of service they have completed. The allotted amount of paid leave usually ranges from 12 to 20 days.

Public Holidays

There are 12 public holidays.

Sick Days

If an employee has worked for the same employer for four months, they are eligible for up to 12 days of paid sick leave; however, they must submit a certificate of illness on the first day of their illness. While on leave, eligible employees get social security payments.

Maternity Leave

After 12 months of continuous employment, women are eligible to 13 weeks of paid maternity leave. After the anticipated due date, employees are permitted to take at least six weeks off. The leave can be used at least six weeks following delivery and, in the event of a pregnancy-related sickness, it can be extended up to three months.

Paternity Leave

Fathers of newborn infants in The British Virgin Islands are entitled to one month of unpaid paternity leave, which must be spent before the kid becomes six months old.

Parental Leave

There are no parental leave provisions in the law.

Termination

Termination Process

The procedure for terminating a contract differs depending on the type of contract, the grounds for termination, the employment agreement, and any applicable collective agreements.

Notice Period

The notice time is 15 days in the British Virgin Islands, and all official notice must be made in writing.

Severance Pay

According to the British Virgin Islands Labor Code, an employee receiving severance pay is entitled to one week’s regular income for every year of employment. Along with any appropriate 13th-month payouts, the employee is also entitled to 30 days of vacation pay for every 11 consecutive months of employment.

Probation Period

Probation Period

4 month probationary periods are typical in The British Virgin Islands, though they might be increased to 6 months for more senior personnel.

Immigration

For travel to the BVI, British nationals do not require a visa. All non-BVI citizens, however, must have work permits, which are normally issued on a one- or two-year basis, in order to be employed in The British Virgin Islands.

VAT

In the British Virgin Islands, there is no VAT.