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Your guide to the employment landscape, working customs and local labor laws in Marshall Islands.
Capital
Majuro
Currency
United States Dollar (USD)
Languages
Marshallese, English
GDP per Capita
$5,403.22
Employer Tax
11.5%
Payroll Frequency
Monthly
Marshall Islands is an archipelago located near the Equator in the Pacific Ocean. It is a part of the Micronesia island group and shares its boundaries with Kiribati, Wake islands, Nauru and Federated States of Micronesia. In 2021, the country recorded a GDP of USD 248 million with a contracted growth rate of 2.5%.
Major economic hubs:
Majuro, Ebaye, Arno
Skills in demand:
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The below table mentions some of the job and average monthly salary in Marshall Islands:
| No. | Job Title | Average Monthly Salary (USD) |
| 1 | Financial Controller | 2,620 USD |
| 2 | General Manager | 3,840 USD |
| 3 | Business Development Manager | 3,640 USD |
| 4 | Financial Analyst | 2,880 USD |
| 5 | Business Analyst | 2,840 USD |
| 6 | Project Manager | 2,650 USD |
The Labor and Industrial Relations Act regulates the employment relationship between employers and non-resident employees in Marshall Islands. The following sections cover various aspects of the Act, which every employer and employee must comply with to legally work in the country.
The employment contract in Marshall islands must be in official language i.e., Marshallese or English.
Probation Period: All permanent employees in Marshall Islands must serve a probation of six months. The probation may be extended a further six months in the first year of employment.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 2 Jan | Day off for New Year’s Day | Public Holiday |
| 1 Mar | Remembrance Day | Public Holiday |
| 7 Apr | Good Friday | Public Holiday |
| 1 May | Constitution Day | Public Holiday |
| 2 Jun | Youth Day | Public Holiday |
| 7 Jul | Fishermen’s Day | Public Holiday |
| 1 Sep | Labor Day | Public Holiday |
| 22 Sep | Manit Day | Public Holiday |
| 17 Nov | President’s Day | Public Holiday |
| 1 Dec | Gospel Day | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| Type of Leave | Time Period | Mandatory |
| Annual leaves | 2.5 days per completed month of service | Yes |
| Sick leaves | Based on collective agreement | Yes |
| Maternity leaves | NA | Yes |
Payroll cycle
The payroll cycle is monthly in Marshall Islands.
Minimum wage
The minimum wage in Marshall Islands is USD 2 per hour.
Overtime pay
The standard working time is 40 hours in a week, exceeding that is overtime. However there is no specific compensation for overtime.
| Contribution | Rate |
| Social security | 8% |
| Health insurance (quarterly) | 3.5% |
| Contribution | Rate |
| Social security | 8% |
| Annual Income | Rate |
| Up to USD 10,400 | 8% |
| More than USD 10,400 | 12% |
A yearly amount of USD 1,040 is tax-exempt for individuals earning less than USD 5,200.
Local authorities in Marshall Islands levy sales tax at 2% and 4%.
The 13th month pay is not mandatory in Marshall Islands.
Legislations in Marshall Islands justify redundancy as legal grounds for termination and dismissal.
There are no provisions for mandatory notice periods in Marshall Islands.
Employers in Marshall Islands are not mandated to pay severance packages to terminated employees.
Work permit in Marshall Islands is of five types – Foreign investor, OSL (Occupational Shortages List) professionals, General, Family and Temporary. All the types have various demands which the applicant must fulfil.
The work permit application must be submitted to the Director of the Labour Division. After granting the permit, the Director requests the Immigration Division for a work visa.
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