Micronesia
Expand your global workforce in Micronesia
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
Talent overview
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. 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:
Information Technology Engineer, Software engineer, Developers
Top local universities in Micronesia
College of Micronesia-FSM
Ranking
Local: 1
World: 6445
Top Local Job Boards:
Number of LinkedIn users:
11,470
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
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 |
Employ in Micronesia
Employing in Federation of Micronesia (FSM)
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.
Employee Contract
According to the Micronesia labor law, the language of the employment contract must be in English or any other language both parties can understand.
Probation Period
The probation period in Micronesia for newly hired employees ranges from six months to one year.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| March 31 | Micronesia Culture Day | National Holiday |
| May 9 | Constitution Day observed | National Holiday |
| May 10 | Constitution Day | National Holiday |
| October 24 | United Nations Day | National Holiday |
| November 3 | Independence Day | National Holiday |
| November 11 | Veterans of Foreign Wars Day | National Holiday |
| November 23 | Presidents Day | National Holiday |
| November 24 | Presidents Day observed | National Holiday |
| December 25 | Christmas Day | National Holiday |
Local Holidays
| Date | Name | Type |
| January 10 | Kosrae Constitution Day observed | Local Holiday |
| January 11 | Kosrae Constitution Day | Local Holiday |
| February 28 | Yap Day observed | Local Holiday |
| March 1 | Yap Day | Local Holiday |
| March 8 | International Women’s Day in Pohnpei | Local Holiday |
| April 18 | Good Friday | Local Holiday |
| August 21 | Gospel Day (Kosrae) | Local Holiday |
| September 8 | Kosrae Liberation Day | Local Holiday |
| September 11 | Pohnpei Liberation Day | Local Holiday |
| October 1 | Chuuk Constitution Day | Local Holiday |
| November 3 | Kosrae Self Government Day | Local Holiday |
| November 7 | Pohnpei Constitution Day observed | Local Holiday |
| November 8 | Pohnpei Constitution Day | Local Holiday |
| November 27 | Thanksgiving | Local Holiday |
| December 24 | Yap Constitution Day | Local Holiday |
Employee Leaves
| 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 | 8 weeks (per 12 month) | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Micronesia
Payroll cycle
The payroll cycle in Micronesia is monthly.
Minimum wage
The overtime pay in Micronesia ranges from $4.52 per hour.
Read more
Overtime pay
It is mandatory to provide overtime pay based on mutual agreement.
How taxes work
Employer Payroll Tax:
| Fund | Contribution |
| Retirement | 7.5% |
Employee Payroll Tax:
| Fund | Contribution |
| Retirement | 7.5% |
Employee Income Tax:
| Annual Taxable Income | Tax Rate |
| Up to $11,000 | 6% |
| Above $11,001 | 10% |
VAT:
The standard rate of VAT in Micronesia is 5%.
Bonus
13th Month Pay:
There is no mandatory law for the 13th-month pay in Micronesia.
Employee Benefits:
- Retirement Benefit
- Disability Benefit
- Family Benefits
Employee offboarding
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.
Visa and
immigration
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.
Your employment toolkit for Micronesia
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Overtime Pay
Minimum Wage
State-specific minimum wages for government employees are as follows:
- Pohnpei: $2.90 per hour
- Chuuk: $2.00 per hour
- Kosrae: $2.16 per hour
- Yap: $3.24 per hour
Overtime Pay
Visa and Immigration