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Vanuatu is a small nation made up of an archipelago of islands roughly 1000 miles off the northeast coast of Australia. Home to native Melanesian people, these islands were previously ruled by the Spanish, French, and English and only achieved independence in 1980. Since that time, the economy of the small nation of 345,000 has grown tenfold to its current GDP size of $1.29 billion. This growth is predicted to continue at 3.0% in 2024 based on its main industries of agriculture, tourism, offshore financial services, and raising cattle. The 2023 unemployment rate was a modest 5.1%, just slightly higher than average. This means that there are Ni-Vanuatu, Vanuatu people, ready to work right now. If your company wants to hire them, working with an EOR may be your best option.
Hire in Vanuatu, and pay employees through our platform or app.
Our Vanuatu EOR solution is the most affordable on the market.
Fast Vanuatu onboarding, hire in as little as 24 hours.
We draft compliant Vanuatu labor contracts.
We manage all Vanuatu mandatory benefits.
It doesn’t stop with Vanuatu — we hire employees globally.
An EOR is an employer of record. This kind of service provider may sometimes also be referred to as a PEO or professional employment organization, and these terms can be used interchangeably. An EOR works with other companies, allowing them to hire employees in Vanuatu without having to own business entities there. However, EORs do more than recruit and hire. Their clients can also outsource human resources (HR) functions to them. EORs can provide services that include contract management, payroll, benefits administration, leave scheduling, and more. In exchange, their client companies pay them regular fees for each worker they manage over the long term.
Any company that works with an EOR will instantly recognize the benefits they bring. Among the advantages that EORs provide for their clients are:
Horizons stands out as a Vanuatu EOR through:
If you decide to work with an EOR in Vanuatu, you’ll need to pay a fee to this service provider to manage your employees. Most EORs will provide the following services for you:
Vanuatu enjoys a wide array of employment laws designed to protect the interests of both employers and employees. These laws are found in legal instruments such as the Vanuatu Constitution of 1980 (revised in 2013), the Employment Act of 2020, other Ministerial orders, and the International Labor Organization conventions that Vanuatu has ratified. It can be very difficult to follow these scattered laws, and this responsibility is best left to the EOR. Employers should, however, make themselves familiar with the following main points of law as these can let them know what they must provide for their Vanuatu workers.
Contracts can be oral but must be in writing if the period of work is over six months. Contracts must include the names of the parties, the nature of employment, and the amount and the mode of payment of remuneration. Contracts can be permanent or fixed-term, though fixed-term contracts cannot last longer than four years.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
Not applicable
Not applicable
Not available
30 days (minimum and maximum allowed by labor law)
1 week salary per year of service; maximum of 24 weeks
Ni-Vanuatu cannot work regular hours of more than 44 hours or six days per week or more than eight hours in a day. These hours can be extended through overtime, which must be paid at a higher rate and is limited to 16 hours per week.
125% of the standard hourly rate
150% of the standard hourly rate
150% of the standard hourly rate
Vanuatu has 14 paid public holidays each year. These are a mixture of national days and Christian religious observances. Workers cannot be required to work on public holidays or Sundays. If they volunteer, they must receive compensatory days off on other days.
| Date | Holiday name |
|---|---|
| 1 Jan, 2024 | New Year’s Day |
| 21 Feb, 2024 | Father Walter Lini Day |
| 5 Mar, 2024 | Customary Chief’s Day |
| 29 Mar, 2024 | Good Friday |
| 1 Apr, 2024 | Easter Monday |
| 1 May, 2024 | Labor Day |
| 9 May, 2024 | Ascension Day |
| 24 Jul, 2024 | Children’s Day |
| 30 Jul, 2024 | Independence Day |
| 15 Aug, 2024 | Assumption Day |
| 5 Oct, 2024 | Constitution Day |
| 29 Nov, 2024 | Unity Day |
| 25 Dec, 2024 | Christmas Day |
| 26 Dec, 2024 | Family Day |
Workers who work more than six hours in a day are entitled to one hour for a meal and one 20-minute or two ten-minute tea breaks per day. These breaks are unpaid. Workers are also entitled to one 24-hour rest period per week.
no leave entitlement
15 to 21 days of paid leave annually
15 to 21 days of paid leave annually
23 days of paid leave annually
Any worker employed continuously for over three months is entitled to 21 days of fully paid sick leave per year. For absences longer than four days, a medical certificate must be provided to the employer.
(percentage of regular wages owed to the employee)
Not mandated (but employers might offer 5 to 10 days)
Not mandated (but employers might offer 5 to 10 days)
Not mandated (but employers might offer 5 to 10 days)
Not mandated (but employers might offer 5 to 10 days)
Unpaid (unless specified in the employment contract)
Unpaid (unless specified in the employment contract)
Unpaid (unless specified in the employment contract)
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.
Expecting mothers are entitled to 12 weeks of maternity leave, six before and six after confinement, at 66% of their normal salary. There is no entitlement for paternity leave in Vanuatu.
Annual leave is related to seniority. Employees who have worked one to six years for an employer receive 1.25 days for each month of work or 15 days of leave per year. For 7-19 years of service, workers get 1.75 working days per month of service (21 days annually). After 20 years, workers get 36 days per year, 48 days after 25 years, and 72 days after 30 years.
The employer must give notice of termination except for cases of gross misconduct. Employees working for less than three years must receive 14 days’ notice, while after three years, they must receive three months’ notice. When severance must be given, it’s paid at one month’s wages for each year of service provided.
Vanuatu has a compulsory social security system managed by the Vanuatu National Provident Fund (VNPF). Benefits include Old-age pensions and withdrawal benefits.
Both the employees and employers contribute a percentage of the employee’s salary to the VNPF.
The social security system in Vanuatu is undergoing reform, and the specific rules for foreign worker contributions are not entirely clear yet.
Some foreign workers might be covered by private social security plans offered by their employers, particularly if they are employed by international companies.
Vanuatu does not levy any personal income tax on residents or non-residents. This means you generally won’t pay taxes on your salary, investments, or other forms of income earned in Vanuatu.
To be considered a non-tax resident and benefit from the absence of income tax, you typically need to demonstrate that you spend less than 183 days per year in Vanuatu.
Vanuatu’s healthcare system faces some challenges, and health insurance isn’t as widespread as in many other developed countries.
Vanuatu has a public healthcare system, but resource limitations and long wait times are common. Public hospitals and clinics are generally used for emergencies or by those who cannot afford private healthcare.
Some larger companies in Vanuatu might offer health insurance as part of their employee benefits package.
The minimum wage for Vanuatu workers has been set since 2023. Workers who work 40 hours/week must receive at least 51,960 VUV (Vanuatu vatus)/month (about 430 USD), and workers who work 44 hours/week must receive at least 57,165 VUV/month (about 475 USD).
Overtime must be paid at 125% of normal wages for the first four hours of the week. For subsequent hours, this rate increases to 150%.
A 13th-month annual bonus is not mandatory in Vanuatu. However, some employers may offer this bonus to improve their employees’ compensation packages.
Employers in Vanuatu pay contributions equal to 4% of a worker’s salary for old age, invalidity, and survivor’s benefits. Employees are also deducted 4% of their salaries toward these same benefits for a total of 8%.
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The answer is that the EOR must have knowledgeable and experienced staff who know all about the tax and employment laws in Vanuatu. This staff prepares contracts to offer working conditions and compensation that are in line with local statutes. It also constantly monitors working conditions to ensure they’re being adhered to. Because it also handles payroll, the EOR ensures that all tax, social security, and salary payments are timely and correct.
The top benefit of working with a Vanuatu EOR is that it lets you hire local staff without having to own an entity in the country. EORs can also recruit and hire employees much more quickly and effectively than you could do on your own. EORs manage your employees’ long-term HR needs and ensure that everything is done legally so you don’t have to work about penalties or legal actions.
Holiday Schedule in Vanuatu [2024]
