Got TIPS or BREAKING NEWS? Please call 1-284-442-8000 direct/can also WhatsApp same number or Email ALL news to:newsvino@outlook.com;                               ads call 1-284-440-6666

Employers warned against evading NHI payments, underpaying staff

- said defaulting employers could face penalties but responsibility also rests with employees
Businesses in the Virgin Islands (VI) have been cautioned bu Hon Vincent O. Wheatley against involving in acts that evade NHI payments in the Virgin Islands (VI) on behalf of their employees. Photo: VINO/File
Additionally, Hon Vincent O. Wheatley said some work permits were found to be held by one employer, but their NHI contributions were being paid in under another employer. This according to the Minister, showed that the employees were not working for the companies identified in their world permits. Photo: VINO/File
Additionally, Hon Vincent O. Wheatley said some work permits were found to be held by one employer, but their NHI contributions were being paid in under another employer. This according to the Minister, showed that the employees were not working for the companies identified in their world permits. Photo: VINO/File
DUFFS BOTTOM, Tortola, VI – Businesses in the Virgin Islands (VI) have been cautioned against involving in acts that evade National Health Insurance (NHI) payments in the Virgin Islands (VI) on behalf of their employees.

These calls were made by Minister for Natural Resources, Labour and Immigration, Hon Vincent O. Wheatley (R9) at the Seventh Sitting of the Third Session of the Fourth House of Assembly (HoA) today, April 15, 2021.

Hon Wheatley noted that the practice had been going on long before the COVID-19 pandemic in the Virgin Islands.

Minimum salaries not being met 

“After conducting thorough investigations, the department founded in 2019, even before COVID-19 affected our shores, many employees were making less than a mandatory minimum gross income of $12,040 per annum or gross earnings of less than established standards,” he said.

“In fact, many persons were not even remitting the 52 weeks contribution prescribed by the Social Security board. It was further noted that in 2019, gross earning for some permit holders was even listed to be as low as $960.00 for the entire year,” Hon Wheatley noted.

Additionally, he said some work permits were found to be held by one employer, but their contributions were being paid in under another employer. This, according to the Minister, showed that the employees were not working for the companies identified in their world permits.

“And such, instead of denying these work permits, the department of labour took a proactive stance and approved the renewals for these workers for six months,” in a move of extended mercy he said, although the permit should be denied.

Stop evading contributions - Hon Wheatley 

Hon Wheatley reminded that employees should desist from practices that evade contribution to NHI, which is the responsibility of both the employer and employees.

“Unfortunately, the department has found that some employers attempt to evade these responsibilities as some cash strapped businesses choose to take out the money from the employees’ paycheck, thus borrowing the money cash on to pay back later.

“Others simply take the money with no plan to repay, as such we are reminding employers but once they withhold the requisite payments from the employee’s paycheck, along with the required out of pocket portions, the monies deducted must be reported and paid directly to these agencies on a monthly basis.”

Hon Wheatley said failure to take the necessary measures will result in the ineffective processing of work permits and that withholding monies from the employee’s paychecks is theft, which he also referred to as 'pyramiding'.

Employers doing 'pyramiding' with unsubmitted $$ - Hon Wheatley 

“Businesses involved in pyramiding may also try to step in new business under a different name,” he said.

Further, the Minister said paying in cash is another means of employers evading making mandatory payments; however, while it is not illegal to pay an employee in cash, he said contributions of payments should still be deducted and made to NHI.

"Whatever the reason, Mr speaker, not making these payments is one of the worst things an employer can do. Failure to pay constitutes stealing from the employees [and] employers who engage in this practice [will be] subject to penalties,” he said.

Hon Wheatley said the responsibility also lies with employees, who should check to see if their contributions are being paid by the employer and if not so they should report it.

23 Responses to “Employers warned against evading NHI payments, underpaying staff”

  • 3 months (15/04/2021, 15:31) Like (22) Dislike (1) Reply
    These things need a 3 month check up. Not wait until persons need to renew permits or persons get sick to check up on employers. Employees need to hold employers accountable. If there is a red flag within that period employees should have the right to investigate if their deductions and contributions are been paid in. That's my opinion
    • Use the computer (15/04/2021, 16:42) Like (24) Dislike (0) Reply
      If they use the computer in their office, they will know all the crooked employers..
  • Shaft (15/04/2021, 15:53) Like (14) Dislike (0) Reply
    THIS DIRTY BEHAVIOR HAS BEEN ALLOWED TO GO ON FOR YEARS AND THOSE PEOPLE WHO YOU FLEX YOUR MUSCLES ON , THOSE POOR PEOPLE WHO ARE WORKING TO MAKE AN HONEST LIVING , AND YOU FIND THE
    HEART IN DOUBLE TAXING THEIR MONEY THAT SOME OF THOSE SAME PEOPLE HAS TO LICK SOME OF THOSE HOLY EMPLOYERS BOTTOM TO GET WHAT THEY WORK HARD FOR / ( APALLING ) BUT AM VERY GLAD YOU FINALLY GOING TO TAKE CARE OF IT HOPEFULLY ( LIVE AND LET LIVE BRO )
  • Me (15/04/2021, 15:54) Like (28) Dislike (0) Reply
    When they report then get fired or victimized, easier said.
  • WHAT!!! (15/04/2021, 16:25) Like (19) Dislike (0) Reply
    Business owners are avoiding paying NHI, and underpaying staff . Nothing new and have always been allowed to get away with it.
  • 1st District (15/04/2021, 16:36) Like (18) Dislike (1) Reply
    The government need to pay the delinquent payments. Dem already couldn't get SS collect from them worthless own 'I FROM HERE PEOPLE' and turn around and add insult to injury with NHI. what dem expect from God fearing people. Only ah set of flockers!!!!
  • Accountability (15/04/2021, 17:17) Like (41) Dislike (0) Reply
    SS needs look at their staff also. I know of someone who went to check on the status of his contributions as his salary was being deducted. No contributions were made for over 6 months. Before he got back on his job his employer knew and started to threaten him. Is a good thing he met his match in the employee. HE couldn't intimidate him neither was this employee fearful. What about those who do not possess such traits or not even aware based on maybe level of intellect how they should proceed. I think SS needs a department that does checks on registered companies every 3 months to ensure they are in compliance.
  • Is there an app for that? (15/04/2021, 17:30) Like (21) Dislike (0) Reply
    If not, there should be. It's possible to view the Gazette online. Likewise, employees should be able to check on the status of NHI, Social Security and Inland Revenue contributions simply by accessing an official government portal through the app. There should be no need to be physically present to access this information and to find transport or parking and contribute to the traffic congestion in Road Town for something so simple.

    It is 2021, we are in the digital age. Let's get with it.
    • annudda2cents (15/04/2021, 17:56) Like (13) Dislike (1) Reply
      "Is there an app for that", I agree with you. Emphasis should be made on reducing the number of persons that have to visit an office physically for trivial things that can easily be found via an online data base. Each person residing in this territory that are 18 years or older should be required to sign up in a digital portal that allows them to track the status on their obligations to Government. Persons that are under 18 should be connected to their parents or legal guardians. This way, everyone is fully accounted for, and everyone can know where they stand. For the life of me, I cannot comprehend how certain innitiatives, not just with this topic, but across the board, have not been implemented as yet considering how small the Territory is.
      • Just looking (16/04/2021, 06:36) Like (1) Dislike (0) Reply
        You seem to be very intelligent, your words your sentences and your comments is very well put together and I agree with all what you have said.
      • Just looking (16/04/2021, 06:51) Like (1) Dislike (0) Reply
        You seem to be very intelligent, your words your sentences and your comments is very well put together and I agree with all what you have said.
    • @ Is There An App for that (15/04/2021, 22:41) Like (3) Dislike (0) Reply
      Guess what...NHI has a website where each employee and employer can log in and check contributions BUT IT’S NEVER UP TO DATE REGARDLESS OF PAYING CONTRIBUTIONS IN ADVANCE.
  • 284TDove (15/04/2021, 18:13) Like (24) Dislike (0) Reply
    This is a long overdue! The various departments undoubtedly have been undated with a myriad of complains / inquiries and suggestions. It's a crying shame to steal from your employees when you are receiving their services. Where is the balance? It is mandated by law that employers submit their employees’ wages within the time prescribed and to not allow these payments to fall behind. It is the employers’ duties not that of the employees.

    The ramifications fall heavily on the employees and most are subjected to refusal/denial/rejection on certain common services because of the disservice provided by the employers. We are looking at medical, work permit renewals, banking services to name a few. Those employees are deemed not in good standing at no fault of theirs but yet they are not permitted to benefit from this cynical act of theft /pilfering. Most of the staff are barely making the minimum wage and others are victimized if they inquire on their NHI, PAYE and SS contributions/status – it’s their right to inquire. Why would you produce a document evidencing the payroll deductions and not submit/remit accordingly? Like seriously, this is the dumbest thing ever.

    We need to do better – I’m calling out to those the large corporations, seasoned firms and uppity individuals that walk around with their chest out and OPP in their bank accounts and stand with their chest out because they give donations/gifts and or their names/associations allow them to carry on in that malice fashion. It is very unfair – I am not personally a victim, my employer is stellar and understand the implications and besides is very reputable and hold high standards for good corporate housekeeping and morals.

    Employers, you know who you are, stop taking advantage of your staff because if the truth be told if those same staff were to wrong you, you would be the first to oust and shame them as well as take legal actions. Equally, our government need to be more proactive and call out those that casually and habitually take advantage and inflict these grave inconveniences to their employees. I say SHAME and FINE them heavily and not issue a trade license until all fees and penalties are paid up and have them monitored on a regular (Of course now we will need to amend our laws). This may be the only deterrent and action to make them get their acts together. Full Accountability and Compliance must be enforced.

    Get it together – It’s not your money, stop stealing from the treasury and employees. It’s rather distasteful and such a huge inconvenience to your employees and waste of time and resources on the system. Comply or be Fined!
  • gfdfdggfdgfdgfdg (15/04/2021, 18:16) Like (9) Dislike (0) Reply
    A businessman in the last HOA did this with at least some of his employees. I hope they hold everyone accountable, but I am not holding my breath.
  • Hmm (15/04/2021, 19:10) Like (6) Dislike (0) Reply
    Employees you are talking about seems to be expats. Well we will know who is paying you see locals do not have to get certificate of earnings to take to labour dept. But every expat on wp and those exempted now have to provide this information. We now know expats are paying does the locals pay the right amount??
  • Hmmmm (15/04/2021, 19:58) Like (10) Dislike (0) Reply
    When i see it i will believe it, i know someone who for an company for over 20 years, the owner of the company did not pay the workers social security and Nhi for over 6 years, social security put the owner of the company in court all the owner tell social security and NHI that he don't have no money to paid up to this day that owner of the company have not paid one cent, so when i see it i will believe and up to now the workers can not get the severancere pay, it don't make no sense going to the Labor Complain officers he is no help, everytime you go by him it's just pure excused over and over
  • NHI (15/04/2021, 21:20) Like (3) Dislike (1) Reply
    This insurance needs to be revised. Needs to be once a year something like Atlantic southern n the rest insurance
  • Doll (16/04/2021, 01:15) Like (4) Dislike (0) Reply
    Can you imagine some employers make sure their expat workers government remittances are paid but often fail to pay the Belongers and BVIslanders?
    This allows the person''s WP to be renewed. The expat isn't going to make a fuss if the employer cannot pay their salaries for 3 months or if they get paid less than the law allows. Guess who these employers are? Preachers, Teachers, Lawyers, Politicians (retired), Pastors/Preachers - a damn set of THIEVES! One of these days an employee will take things into their own hands and file a lawsuit against their dishonest backside. Walking on the street pretending to be important but wicked to the core. How can these people sleep at nights?
  • Not Just NHI (16/04/2021, 06:49) Like (2) Dislike (0) Reply
    You have some who pay no social security, no NHI and no payroll tax. You have some who they are paying minimum wage and the employee have to pay NHI and themselves. You have so called lay preachers here who are involved in such practices. But, they still get certificate of good standings to renew business licenses and and to get new ones. This is nothing new. Employee can check up on payments but are powerless to do anything about it because the are either ignored or threatened with termination or deportation. Even the SSB is powerless to do anything about it. SSB will call, send letters, and if they are lucky will hold a meeting with such employer but can or will do nothing about it Mr. Minister. Welcome to the real world. It is interesting that the Labour department has such data but implemented proof of payment as a work permit renewal requirement, thereby penalising the worker twice over instead of tackeling the problem of non-payment by employers.
  • enforcement (16/04/2021, 07:26) Like (8) Dislike (1) Reply
    Can anyone here tell me of a single case where an employer was actually fined for this practice? I doubt it. These politicians are all talk.
  • Ermetta (17/04/2021, 17:06) Like (0) Dislike (0) Reply
    Nonsense , and the quick to send home the employees who nhi and social security is not up to date.
    What are you going to do about the situation vincent
  • 23 year old female belonger (18/04/2021, 23:22) Like (1) Dislike (0) Reply
    At this point in my life where I've had conversations with the labor department and the NHI staff about the crooked employers that I've had to deal with for as long as I've been working.. I'm pretty sure that I'd be one of those people who still would have to work when I'm elderly. A funny statement that I keep hearing whenever I share my struggles is "But you from here, why you dealing with all that" or "you from here, just find another job", who the heck would feel comfortable just hopping from job to job like that. I've had someone who worked at labor department tell me to work for a white man because alot of people are complaining about the local employers.. they have little to no respect for you by speaking to you however and spiting you if you try to stick up for yourself but docking your hours, basically forcing people to do what they don't want to do to make ends meets. There's too much wickedness going on. But the employers are never being held accountable, the question is always "What did you do as an employee" this victim blaming bullshit.


Create a comment


Create a comment

Disclaimer: Virgin Islands News Online (VINO) welcomes your thoughts, feedback, views, bloggs and opinions. However, by posting a blogg you are agreeing to post comments or bloggs that are relevant to the topic, and that are not defamatory, liable, obscene, racist, abusive, sexist, anti-Semitic, threatening, hateful or an invasion of privacy. Violators may be excluded permanently from making contributions. Please view our declaimer above this article. We thank you in advance for complying with VINO's policy.

Follow Us On

Disclaimer: All comments posted on Virgin Islands News Online (VINO) are the sole views and opinions of the commentators and or bloggers and do not in anyway represent the views and opinions of the Board of Directors, Management and Staff of Virgin Islands News Online and its parent company.