CORRECTED: FOR IMMEDIATE RELEASE
January 22, 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) is pleased to announce the new 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). Please note: An earlier press
release incorrectly stated the rate as 4.6%. The correct rate is 4.06%. - Employer Rates: Individual rates will vary based on assigned interval groups, ranging from 2.46% to 5.4%.
The 2025 rates represent part of VIDOL’s annual adjustment process to ensure the stability and sustainability of the Unemployment Insurance Trust Fund. The Department confirms that the payroll variation mechanism introduced last year is working effectively to stabilize these rates.
Looking Ahead:
VIDOL anticipates further reductions in rates in 2026, as continued repayment of advances reduces financial pressures on the fund. Barring major economic disruptions, employers can expect ongoing improvements in rate structures 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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