FOR IMMEDIATE RELEASE
January 17, 2025
Press Contact
Gary Molloy
Office: (340) 773-1994 ext. 2105
www.vidol.gov
gary.molloy@dol.vi.gov
VIRGIN ISLANDS DEPARTMENT OF LABOR (VIDOL) ANNOUNCES 2025 UNEMPLOYMENT INSURANCE (UI) TAX RATES
Commissioner Gary Molloy of the Virgin Islands Department of Labor (VIDOL) announces that VIDOL has finalized the 2025 Unemployment Insurance (UI) tax rates for employers, effective January 1, 2025. These rates are calculated in accordance with Title 24 Chapter 12 Section 308 of the Virgin Islands Code and reflect VIDOL’s commitment to maintaining a balanced and fair system for employers and employees.
Key Details
- Average Contribution Rate: 4.06% (a decrease from 4.11% in 2024).
- Employer Rates: Individual rates will vary based on assigned interval groups, ranging from 2.46% to 5.4%.
The new rates are part of an annual adjustment process aimed at ensuring the stability and sustainability of the Unemployment Insurance Trust Fund. VIDOL’s quick analysis confirms that the payroll variation mechanism introduced last year is functioning as intended, helping to stabilize the rates.
Future Outlook
The Department anticipates further rate decreases in 2026, as the repayment of advances continues to reduce financial pressures on the fund. Additionally, absent any major economic disruptions, employers can expect continued improvements in the rate structure over time.
For more information, please feel free to contact Ms. Faye Reed, Chief of Tax directly at 340-776-3700 Ext. 2035 or via email at faye.reed@dol.vi.gov or in general contact VIDOL at St. Croix: (340) 773-1994 or St. Thomas: (340) 776-3700. You can also visit www.vidol.gov, Unemployment Insurance – Virgin Islands Department of Labor or follow us on Facebook at facebook.com/USVIDOL for updates.
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