Talent Wiki - Micronesia
Your quick guide on talent and labor compliance norms in Micronesia
Capital
Palikir
Currency
United States Dollar
Languages
English
Payroll Frequency
Monthly
GDP per Capita
$4,072
Employer Tax
7.5%
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
Local Universities
Top University in Micronesia is;
College of Micronesia-FSM
Ranking
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 |
Talent Sourcing Tips
Top Local Job Boards:
Number of LinkedIn users:
11,470
Top Recruitment Agencies:
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 |
| 10 May | Constitution Day | Public Holiday |
| 3 Nov | Independence Day | Public Holiday |
| 11 Nov | Veterans of Foreign Wars Day | Public Holiday |
| 23 Nov | Presidents Day | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 26 Dec | Christmas Day observed | 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 | 90 days | Yes |
Payroll
Payroll Cycle
The payroll cycle in Micronesia is monthly.
Minimum Wage
The overtime pay in Micronesia ranges from $1.75 to $2 per hour.
Overtime Pay
It is mandatory to provide overtime pay based on mutual agreement.
Bonus
13th Month Pay:
There is no mandatory law for the 13th-month pay in Micronesia.
Employee Benefits:
- Retirement Benefit
- Disability Benefit
- Family Benefits
Taxes
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%.
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.
