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Micronesia Employment Guide

Your quick guide on talent and labor compliance norms in Micronesia




United States Dollar



Payroll Frequency


GDP per Capita


Employer Tax


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 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:

Information Technology Engineer, Software engineer, Developers

Micronesia Map

Local Universities

The top local universities in Micronesia are as follows:


College of Micronesia-FSM


Local: 1

World: 6445

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
Micronesia Talent Source

Talent Sourcing Tips

Top Local Job Boards:

MillionMakers, JobIsland

Number of LinkedIn users:


Top Recruitment Agencies:

Airswift, Jbsolis

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
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

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 52 weeks Yes



Payroll 1

Payroll Cycle

The payroll cycle in Micronesia is monthly.

Payroll 2

Minimum Wage

The overtime pay in Micronesia ranges from $1.75 to $2 per hour.

Payroll 3

Overtime Pay

It is mandatory to provide overtime pay based on mutual agreement.


13th Month Pay:

There is no mandatory law for the 13th-month pay in Micronesia.

Employee Benefits:

  • Retirement Benefit
  • Disability Benefit
  • Family Benefits


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%


The standard rate of VAT in Micronesia is 5%.

Offboarding & Termination

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.

Micronesia Visa Flag
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Minimum Wage

Overtime Pay

Visa & Immigration