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$249/month
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2% of gross salary / month
Consisting of over 1,000 islands across 29 atolls, the Marshall Islands in the Central Pacific are one of the world’s most unique countries. The nation has a population of just over 40,000 and an economy built largely on public sector work in industries like agriculture and fisheries. With Marshallese and English as official languages, the labor force is adaptable to global opportunities, and many of its young workers have been known to relocate for employment in the USA and other English-speaking territories. Workers keen to embrace foreign opportunities without leaving their home, combined with monthly wages averaging between $800 and $1,500, make the Marshall Islands an attractive prospect for global businesses.
Hire in Marshall Islands, and pay employees through our platform or app.
Our Marshall Islands EOR solution is the most affordable on the market.
Fast Marshall Islands onboarding, hire in as little as 24 hours.
We draft compliant Marshall Islands labor contracts.
We manage all Marshall Islands mandatory benefits.
It doesn’t stop with Marshall Islands — we hire employees globally.
A Marshall Islands Employer of Record (EOR) is an organization that assists global businesses in recruiting and managing workers within the Pacific island nation. It assumes the role of a local entity and employer on behalf of foreign clients, thus saving them the challenges of establishing an independent local entity, gaining knowledge of the Marshall Island labor market and the laws that regulate it, and managing workers remotely. While it is possible to hire a labor force in the Marshall Islands without an EOR, it is a significantly longer, more costly, and high-risk path to follow.
Often discussed interchangeably with an EOR is a Professional Employer Organization (PEO). This is a similar organization that enables global clients to outsource human resource management services within the Marshall Islands. Crucially, however, a PEO does not assume the role of a legal entity, meaning any business choosing a PEO over an EOR is still obliged to establish a local entity outside of its arrangements with the PEO.
Working with a Marshall Islands EOR is one of the most efficient ways to gain access to the talent pool within the country. As an expert in both the region and employee management, an EOR can negotiate the challenges of establishing a labor force in the Marshall Islands with greater ease and a higher chance of success than an inexperienced foreign business is likely to achieve independently.
Among the many benefits of a Marshall Islands EOR are:
Horizons stands out as a Marshall Islands EOR through:
An EOR in the Marshall Islands works by becoming an intermediary between local talent and global businesses. After being tasked by a foreign company to provide workers for a prescribed set of roles, an EOR finds Marshallese people to fill those positions. The EOR hires the workers, becoming their legal employer and accepting all the responsibilities that go with it, before assigning them to work with their foreign client.
Services an EOR will perform include:
One of the key responsibilities of any employer is ensuring its practices are fully compliant with labor laws. An EOR is no different and must have a thorough knowledge of all Marshall Islands laws and regulations before hiring within the territory.
Unlike most nations, the Marshall Islands do not have a legal framework for permanent contracts of employment. However, it does allow for two specific contract types which should both contain terms outlining details of the parties, the job, the compensation, the benefits, intellectual property rights, dispute resolution, and termination processes.
No probationary period.
At completion of the project.
Not applicable
Typically 3 to 6 months
2 weeks to 30 days
Not applicable
Typically 3 to 6 months
30 days (minimum and maximum allowed by labor law)
Depends on the length of service
Regulations regarding working hours in the Marshall Islands are highly dependent on the industry and nature of each position. There is no universally mandated working week, maximum hours, or overtime framework. However, certain industries do have strict limits and requirements, particularly those in the maritime industries. In the case of employment by foreign businesses, it is important that all working conditions are fully addressed in the contract at the time of hire.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
China has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
Date | Holiday name |
---|---|
1 Jan 2025 | New Year’s Day |
28 Feb 2025 | Nuclear Bomb Victims’ Day |
18 Apr 2025 | Good Friday |
1 May 2025 | Constitution Day |
4 Jul 2025 | Fishermen’s Day |
5 Sep 2025 | Labor Day |
26 Sep 2025 | Manit Day (Culture Day) |
17 Nov 2025 | President’s Day |
5 Dec 2025 | Gospel Day |
25 Dec 2025 | Christmas Day |
31 Dec 2025 | New Year’s Eve |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
15 to 20 days of paid leave annually
15 to 20 days of paid leave annually
15 to 20 days of paid leave annually
Sick leave in the Marshall Islands also accrues in line with hours worked, and paid time off is expected to be granted for any illness or injury that prevents a worker from performing their duties.
(percentage of regular wages owed to the employee)
no leave entitlement
10 to 15 days of paid leave annually
10 to 15 days of paid leave annually
10 to 15 days of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
Maternity leave in the Marshall Islands is set at a minimum of 12 weeks. There is a further provision of 20 working days for workers who have not given birth but have parental responsibility for infants or adopted children. Marshall Islands workers are also entitled to one day each year of paid family or community service leave. Any other paid time off must be negotiated at the time of hire and included in the employment contract.
Employees in the Marshall Islands accrue annual leave based on the pattern of their working week. Completion of each five-day week entitles a worker to eight hours of annual leave, while a six-day week is worth 12 hours. The maximum annual leave any worker can accrue in a year is 26 days.
Labor law in the Marshall Islands does not contain any framework for minimum notice periods or severance pay entitlements for Marshallese workers. The Marshall Islands Maritime Act (MG 7-45-1), however, states all seafarers should be given at least two weeks’ notice before termination of their employment, something which can be considered when agreeing on contractual terms for any position.
Social security contribution in the Marshall Islands is 8% of gross covered earnings for both employees and employers. This contribution supports retirement benefits, disability benefits, and survivor benefits.
Foreign employees working in the Marshall Islands are typically required to contribute to the social security system if they are employed by a local company or government entity. This ensures they are covered under the same social security provisions as local employees.
The income tax system is relatively straightforward compared to some other countries. The Marshall Islands uses a flat income tax rate system of 8% on all taxable income for individuals.
The Marshall Islands has a public healthcare system managed by the Ministry of Health. There is no universal public health insurance scheme in the Marshall Islands. Instead, residents typically rely on the public health system or private insurance.
Some residents and expatriates may opt for private health insurance to cover additional medical expenses, including access to private clinics and hospitals or international medical care.
After 18 years, the minimum wage in the Marshall Islands was increased from $2 per hour to $3 per hour in April 2024. There are also plans to continue increasing this to reach $5.25 per hour over the coming years.
There is no law obliging employers to pay a 13th-month salary bonus in the Marshall Islands. Any bonuses or allowances in addition to salary and social security payments must be negotiated directly between employee and employer.
Both employers and employees are required to make contributions to the Marshall Islands Social Security Administration (MISSA). Both parties should pay 8% of the employee’s gross salary for all earnings up to a cut-off of $10,000 per quarter.
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As a specialist service, an EOR should be fully aware of all tax obligations in the territories and sectors it operates. Any EOR working in the Marshall Islands will maintain an up-to-date knowledge of what must be paid, withheld, and contributed for each worker in order to remain compliant at all times.
Working with an EOR to establish a labor force in the Marshall Islands comes with a huge number of advantages. Some of the key benefits include the speed of hiring, outsourcing of all human resources management, and removing the burden of liability for compliance with local labor laws. It also removes the need to establish a local entity within the Marshall Islands, a process that can be costly, complex, and expose the business to significant risk.