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Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.
Explore Multiplier EOR
Your guide to the employment landscape, working customs and local labor laws in Micronesia.
Capital
Palikir
Currency
United States Dollar
Languages
English
GDP per Capita
$2,572.34
Employer Tax
7.5%
Payroll Frequency
Monthly
The Federation of Micronesia is an island on the pacific ocean with four major islands; Pohnpei, Kosrae, Chuuk, and Yap. The country holds an economic freedom score of 61, making it 82nd most accessible in the economy in the 2022 list. Micronesia has seen a developing GDP over the past two years. Industries and Tourism are the major contributors to the overall GDP growth.
Major economic hubs:
Palikir, Colonia, Leelu, Tol
Skills in demand:
Local: 1
World: 6445
11,470
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The average monthly salary of some jobs available in Micronesia is as follows:
| Job Title | Avg. Monthly Salary |
| Financial Manager | 2,870 USD |
| General Manager | 2,440 USD |
| Business Development Manager | 2,240 USD |
| Financial Analyst | 1,740 USD |
| Business Analyst | 1,730 USD |
| Project Manager | 1,570 USD |
While onboarding an individual from Micronesia, employers have to know about the employment laws, benefits, social security, deductions, and allowances. This section contains all the information that is necessary for an employer.
According to the Micronesia labor law, the language of the employment contract must be in English or any other language both parties can understand.
The probation period in Micronesia for newly hired employees ranges from six months to one year.
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 31 Mar | Micronesia Culture Day | Public Holiday |
| 1 Apr | Micronesia Culture Day Observed | Public Holiday |
| 10 May | Constitution Day | Public Holiday |
| 24 Oct | United Nations Day | Public Holiday |
| 3 Nov | Independence Day | Public Holiday |
| 4 Nov | Independence Day Oberved | Public Holiday |
| 11 Nov | Veterans of Foreign Wars Day | Public Holiday |
| 22 Nov | Presidents Day | Public Holiday |
| 23 Nov | Presidents Day Observed | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | There is no mandatory law for annual leave | No |
| Sick Leave | There is no mandatory law for sick leave | No |
| Maternity Leave | 52 weeks | Yes |
Leave Compliance
Payroll cycle
The payroll cycle in Micronesia is monthly.
Minimum wage
The overtime pay in Micronesia ranges from $1.75 to $2 per hour.
Overtime pay
It is mandatory to provide overtime pay based on mutual agreement.
| Fund | Contribution |
| Retirement | 7.5% |
| Fund | Contribution |
| Retirement | 7.5% |
| Annual Taxable Income | Tax Rate |
| Up to $11,000 | 6% |
| Above $11,001 | 10% |
The standard rate of VAT in Micronesia is 5%.
There is no mandatory law for the 13th-month pay in Micronesia.
In the Federation of Micronesia, the employer or the employee can terminate the employment contract without any responsibility. Based on a cause of redundancy, the employer can terminate the employment contract.
The notice period is one week to one month based on years of service in Micronesia.
In Micronesia, the severance pay is 15 days of compensation for each years of service.
An individual has to apply for an alien worker’s permit in order to work from Micronesia. The individual must provide all the necessary personal documents and employment contracts.
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