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%.
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
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.
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.
Employers in Marshall Islands are not mandated to pay severance packages to terminated employees.
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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