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$249/month
$49/month
2% of gross salary / month
Have you ever wondered what it’s like to hire in one of the world’s smallest and most remote nations? Tuvalu, a tiny island country in the Pacific Ocean, is made up of nine islands and has a population of about 11,000 people. It became an independent nation in 1978 after being part of the British Empire. Despite its small size and population, Tuvalu has an interesting history and a unique way of life that is shaped by its geography and isolation.
Geographically, Tuvalu is made up of low-lying atolls and reef islands, making it vulnerable to climate change and rising sea levels. Because of this, it has a close-knit community where everyone knows each other, and traditional practices are blended with modern influences.
When it comes to hiring in Tuvalu, understanding the local lifestyle is very important. The economy is mainly based on fishing, remittances from overseas workers, and revenues from its internet domain “.tv.” Opportunities for business expansion are growing, especially in areas like tourism and digital services. However, understanding the local labor market and regulations can be very challenging. This is where partnering with an Employer of Record (EOR) can be very beneficial. An EOR handles all the legal and administrative tasks, making it easier for you to hire local talent and expand your business in Tuvalu without setting up a local entity.
Hire in Tuvalu, and pay employees through our platform or app.
Our Tuvalu EOR solution is the most affordable on the market.
Fast Tuvalu onboarding, hire in as little as 24 hours.
We draft compliant Tuvalu labor contracts.
We manage all Tuvalu mandatory benefits.
It doesn’t stop with Tuvalu — we hire employees globally.
A Tuvalu Employer of Record is a third-party company that handles the legal and administrative responsibilities of employing workers in Tuvalu on behalf of your business. This means they take care of everything from payroll and taxes to benefits and handle all of the local labor laws. Essentially, the EOR becomes the official employer for your staff in Tuvalu, while you maintain control over their daily tasks and work performance. This setup allows you to focus on growing your business without getting bogged down by difficult employment regulations.
The terms “Employer of Record” and “Professional Employer Organization” (PEO) are usually used interchangeably and refer to the same concept. Both EORs and PEOs manage HR tasks and legal responsibilities for other businesses. By partnering with an EOR or PEO, you can streamline your hiring process and ensure compliance with all local laws, making it much easier to manage your workforce in Tuvalu.
Using a Tuvalu Employer of Record comes with a wide variety of benefits that make expanding your business into this island nation a whole lot simpler. One of the main advantages is that an EOR takes care of all the legal and administrative tasks related to employment. This means you don’t have to worry about managing payroll, handling taxes, or ensuring compliance with local labor laws. The EOR does it all for you, allowing you to focus on running your business and achieving your goals.
Another major benefit is the ease and speed of hiring local talent. Setting up a local entity can be time-consuming and complicated, especially in a small and remote country like Tuvalu. An EOR eliminates this hassle by acting as the legal employer, allowing you to onboard new employees easily. This flexibility allows you to scale your team up or down based on your business needs without dealing with the complexities of local bureaucracy.
An EOR also helps minimize any risks associated with employment. They stay up-to-date with any changes in labor laws and ensure that your business stays compliant, reducing the risk of fines and legal issues. This is especially important in a country where the regulatory environment may be unfamiliar to foreign businesses. Also, the EOR handles all employment contracts, making sure they are legally sound and tailored to meet the local standards.
One often overlooked benefit is the positive impact on employee satisfaction. An EOR manages employee benefits such as health insurance and retirement plans, ensuring that your team receives the perks they deserve. This can greatly improve morale and retention rates, helping you build a motivated and loyal workforce. Plus, the EOR provides support with employee onboarding and offboarding, ensuring a smooth transition for new hires and departing staff.
Horizons stands out as a Tuvalu EOR through:
One of the principal reasons for engaging an EOR in Tuvalu is to ensure full compliance with Tuvalu’s employment laws. Here we explain in detail how a Tuvalu EOR ensures:
In Tuvalu, employment contracts can be either permanent or fixed-term. Permanent contracts are for ongoing roles with no set end date, providing job security and long-term benefits like health insurance and retirement plans. Fixed-term contracts are for a specific period or project, with a clearly defined start and end date. These contracts are often used for temporary or seasonal work. Both types of contracts must comply with Tuvalu’s labor laws, ensuring that terms and conditions are fair and transparent for both employers and employees.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
30 days
Not applicable
Typically up to 3 months
30 days
1 month salary per year of service
The standard working hours in Tuvalu are typically 40 hours per week, usually spread over five days. Most businesses operate from Monday to Friday, with each workday lasting about eight hours. Employees are entitled to regular breaks, including a lunch break. Any work beyond the standard 40 hours is considered overtime, which must be compensated at a higher rate, generally 1.5 times the regular hourly wage. This helps ensure that employees are fairly compensated for the extra time they put in.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
In 2024, Tuvalu will observe several public holidays that are important for both cultural and national reasons. These include New Year’s Day (January 1), which marks the start of the new year; Commonwealth Day (March 11); Holy Saturday (March 30) and Easter Monday (April 1), which are significant Christian holidays; Independence Day (October 1), celebrating Tuvalu’s independence from the United Kingdom in 1978; and Christmas Day (December 25), which celebrates the birth of Jesus Christ. On these days, employees typically have the day off with pay. If they work on any public holiday, they must be compensated at a higher rate, often double their regular pay.
| Date | Holiday name |
|---|---|
| 1 Jan, 2024 | New Year’s Day |
| 11 Mar, 2024 | Commonwealth Day |
| 29 Mar, 2024 | Good Friday |
| 30 Mar, 2024 | Holy Saturday |
| 1 Apr, 2024 | Easter Monday |
| 13 May, 2024 | Gospel Day |
| 8 Jun, 2024 | King’s Official Birthday |
| 5 Aug, 2024 | National Children’s Day |
| 1 Oct, 2024 | Tuvalu Day |
| 11 Nov, 2024 | Heir to the Throne’s Birthday |
| 25 Dec, 2024 | Christmas Day |
| 26 Dec, 2024 | Boxing Day |
Employees in Tuvalu are usually entitled to paid time off, which includes vacation leave and public holidays. Full-time employees usually earn a minimum of 15 days of paid vacation per year. PTO policies should be clearly outlined in the employment contract, detailing how leave is accrued and what the process is for requesting time off.
no leave entitlement
15 days of paid leave annually
15 days of paid leave annually
15 days of paid leave annually
Sick leave in Tuvalu allows employees to take time off when they are ill without losing pay. Full-time employees are generally entitled to a minimum of 10 days of paid sick leave per year. To qualify for paid sick leave, employees may need to provide a medical certificate if they are absent for more than two consecutive days. Clear sick leave policies should be included in the employment contract, outlining the procedures for notification and documentation. This ensures that employees can recover without worrying about financial loss.
(percentage of regular wages owed to the employee)
no leave entitlement
10 days of paid leave annually
10 days of paid leave annually
10 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.
Female employees are entitled to 12 weeks (3 months) of maternity leave. This leave can be taken as 6 weeks before the expected date of confinement (birth) and 6 weeks after the birth, but adjustments can be made based on the actual date of birth and medical advice.
The Employment Act does not provide a statutory entitlement to paternity leave.
Annual leave provides employees with a break from work to relax and spend time with family. In Tuvalu, full-time employees are entitled to a minimum of 15 days of paid annual leave each year after completing one year of service. Employers can choose to offer more, but 15 days is the legal minimum. Annual leave should be scheduled in advance and agreed upon by both the employer and employee, ensuring that business operations are not disrupted.
Termination of employment in Tuvalu must follow specific legal procedures to ensure fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is typically one week. For those with longer service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one week’s pay for each year of service. Employers must also provide a written reason for termination and follow due process to protect the rights of employees.
Social security contributions are managed through the Tuvalu National Provident Fund (TNPF). The TNPF is responsible for providing retirement benefits and other financial protections to employees.
These contributions provide retirement benefits, withdrawal options, survivor benefits, and potential housing loans for employees. Employers are responsible for registering employees and ensuring timely remittance of contributions to the Tuvalu National Provident Fund.
Foreign employees are required to make contributions to the TNPF just like local employees. This means both the foreign employee and their employer must contribute to the fund.
Tuvalu uses a progressive tax system – rate ranges from 0% to 25%. Taxable income includes earnings from employment, business income, and other sources of income. It is calculated after deducting any allowable expenses or exemptions.
The Ministry of Health provides the majority of healthcare services in Tuvalu. Basic healthcare services at public facilities are generally provided at low or no direct cost to residents. This includes general medical care, maternal and child health services, and treatment for common illnesses.
There are some private healthcare providers in Tuvalu, especially in the capital city, Funafuti. Private facilities may offer more specialized services and shorter wait times compared to public services.
In Tuvalu, compensation laws are designed to ensure that employees are paid fairly and on time. There is no set minimum wage by the government for the private sector, and the set wage for workers in the public sector is between A$3,00-A$4,000. Payment of wages typically occurs on a bi-weekly or monthly basis. According to Tuvalu’s Employment Act, any overtime work must be compensated at a higher rate, usually 1.5 times the regular hourly wage.
The concept of a 13th month salary, which is common in some countries, is not a standard practice in Tuvalu. However, some employers may offer performance-based bonuses or additional compensation at their discretion.
In Tuvalu, social security contributions are crucial for providing various social benefits, including pensions and healthcare. Both employers and employees contribute to the National Provident Fund (NPF). The NPF is regulated by the Tuvalu National Provident Fund Act, which mandates that a portion of the employee’s salary be deducted and contributed to the fund. Employers also contribute an additional amount. These contributions help provide financial security for employees in cases of retirement, disability, or other situations where they might not be able to work.
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It simplifies the hiring process by taking care of all the administrative and legal tasks, so you can focus on finding the right talent. You can quickly hire local employees without setting up a local entity, saving time and effort. Additionally, an EOR ensures compliance with local labor laws, reducing the risk of fines or legal issues. This means you can expand your business more easily and concentrate on growing your operations while the EOR handles the employment details.
An Employer of Record in Tuvalu takes care of all the details to ensure your business complies with local labor laws. They handle everything from drafting legal employment contracts to processing payroll and managing taxes. The EOR stays updated on any changes in labor laws, ensuring your business remains compliant without you needing to worry about it. This allows you to focus on running your business while knowing all legal requirements are being met.
Holiday Schedule in Tuvalu [2024]
