Your quick guide on talent and labor compliance norms in Guam
Capital
Hagåtña
Currency
United States Dollar (USD)
Languages
English, Chamorro
Payroll Frequency
Weekly, Semi-Monthly, Monthly
GDP per Capita
$35,904
Employer Tax
7.65%
Talent Overview
Guam’s economy relies heavily on the military expenditures of the United States and their tourism industry. Most of their food and industrial goods are imported, that’s why they rely heavily on outside expenditures. Tourists, mainly from Japan and South Korea, bolster the economy of Guam’s pristine island.
Major economic hubs:
Hagåtña
Skills in demand:
Logistics Professionals, Customer Service Professionals, Marketing Professionals, Tourism Professionals
Local Universities
The top local universities in Guam are as follows:
Local: 1
World: 2471
Salary Data
Some common jobs with average monthly salaries are mentioned below:
| Job Title | Average Monthly Salary (USD) |
| Business Analyst | 1,620 |
| Business Development Manager | 2,020 |
| Database Administrator | 1,310 |
| Information Technology Manager | 2,100 |
| Developer / Programmer | 1,240 |
| General Manager | 2,330 |
| Project Manager | 1,560 |
Talent Sourcing Tips
Hiring employees in Guam is fairly straightforward when you have a strong grasp on its employment laws, benefits, payroll, and tax systems. Most of their policies reflect the United States Federal Government’s national labor laws but also have their own particular policies. You can better your knowledge for hiring and onboarding talents in Guam successfully.
Employment contracts in Guam are required by law and must be in English and the language the other party is familiar with. Documentation is important in hiring employees in Guam and must be adhered to.
| Date | Name | Type |
| 1 Jan | New Year | Public Holiday |
| 15 Jan | Martin Luther King Jr. Day | Public Holiday |
| 4 Mar | Guam History and Chamorro Heritage Day | Public Holiday |
| 27 May | Memorial Day | Public Holiday |
| 4 Jul | Independence Day | Public Holiday |
| 21 Jul | Liberation Day | Public Holiday |
| 22 Jul | Liberation Day observed | Public Holiday |
| 2 Sep | Labor Day | Public Holiday |
| 1 Nov | All Souls’ Day observed | Public Holiday |
| 2 Nov | All Souls’ Day | Public Holiday |
| 11 Nov | Veterans Day | Public Holiday |
| 28 Nov | Thanksgiving | Public Holiday |
| 8 Dec | Santa Marian Kamalen Day | Public Holiday |
| 9 Dec | Santa Marian Kamalen Day observed | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
Payroll
Payroll Cycle
The employees are paid on alternate payroll schedules (weekly, semi-monthly and monthly).
Minimum Wage
The minimum wage in Guam has been USD 8.25.
Overtime Pay
Overtime in Guam is considered after 40 hours of work in a week. The overtime pay is 150% of the standard rate.
Bonus
There is no provision for a 13th-month pay in Guam.
Taxes
Payroll taxes depend on the choice whether the employee chooses the Defined Benefit Plan (protected by Federal Insurance and has a specific amount to be received upon retirement) or Defined Contribution plan (an investment insurance scheme without a fixed amount to be received upon retirement).
| Type | Rate |
| Defined Contribution Plan | 6.2% |
| Medicare (for income below and above USD 200,000) | 1.45% |
| Type | Rate |
| Defined Contribution Plan | 6.2% |
| Defined Benefit Plan | 9.5% for regular pay ; 10.5% for non-base pay option |
| Medicare (for income below USD 200,000) | 1.45% |
| Medicare (for income above USD 200,000) | 2.35% |
| Annual Taxable Income (USD) | Income Tax Rates (%) |
| Up to 6,942.35 | 1.92 |
| 6,942.36 – 58,922.27 | 6.4 |
| 58,922.28 – 103,550.51 | 10.88 |
| 103,550.52 – 120,372.95 | 16 |
| 120,372.96 – 144,119.39 | 17.92 |
| 144,119.40 – 290,667.83 | 21.36 |
| 290,667.84 – 458,132.39 | 23.52 |
| 458,132.40 – 874,650.11 | 30 |
| 874,650.12 – 1,166,200.07 | 32 |
| 1,166,200.08 – 3,498,600.11 | 34 |
| 3,498,600.12 and above | 35 |
There is no VAT rate in Guam. However, a General Sales Tax of 2% is observed in the country.
Offboarding & Termination
An employment contract can be terminated with just cause (including work quality), the company is closing down or the ending of the contract agreement. The notice period comes to an agreement between the employee and employer.
A notice of termination or resignation must be given 14 days before its effect.
There is no severance pay in Guam.
Visa and Immigration
For United States citizens, a Visa is not required to enter Guam. Under the Guam-Commonwealth of the Northern Marianas Visa Program (Guam-CNMI VWP), no business visa is required for up to 45 days. After 45 days, visitors must apply using ESTA to extend their stay on the island.
