Employers warned against evading NHI payments, underpaying staff
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.
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23 Responses to “Employers warned against evading NHI payments, underpaying staff”
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 )
It is 2021, we are in the digital age. Let's get with it.
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!
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?
What are you going to do about the situation vincent