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Expand your global workforce in Marshall Islands

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

Talent overview

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:

Tour guides, Seafarer

Top local universities in Marshall Islands

Uni1 12

College of the Marshall Islands

RANKING

Local: 1

World : 17217

Top Local Job Boards:

Jobisland

Number of LinkedIn users:

9,600

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

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

Employ in Marshall Islands

Employing in Marshall Islands

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.

Employee Contract:

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.

Public and Provincial Holidays

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

Employee Leaves

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

 

Leave Compliance

Payroll in Marshall Islands

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Payroll cycle

The payroll cycle is monthly in Marshall Islands.

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Minimum wage

The minimum wage in Marshall Islands is USD 2 per hour.

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Overtime pay

The standard working time is 40 hours in a week, exceeding that is overtime. However there is no specific compensation for overtime.

How taxes work

Employer Payroll Tax:

Contribution Rate
Social security 8%
Health insurance (quarterly) 3.5%

Employee Payroll Tax:

Contribution Rate
Social security 8%

Employee Income Tax:

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.

VAT:

Local authorities in Marshall Islands levy sales tax at 2% and 4%.

Bonus

13th Month Pay:

The 13th month pay is not mandatory in Marshall Islands.

Employee Benefits: 

  • Paid leaves
  • Overtime pay
  • Social security

Employee offboarding

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.

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Visa and
immigration

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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