Your quick guide on talent and labor compliance norms in Timor Leste
United States Dollar
GDP per Capita
Timor-Leste, or East Timor, is a Southeast Asian country with a GDP (Gross Domestic Product) of USD 1.9 million and a GDP growth rate of 4.4%. The country has a mixed economy, which implies that the government primarily controls the economy and offers limited private freedom. The country stands 181 in the Ease of Doing Business Index conducted by the World Bank.
Major economic hubs:
Dili, Maliana, Suai
The top local universities in Timor Leste are as follows:
World : 10996
World : 13052
World : 13053
World : 13103
World : 13379
Some common jobs in Timor Leste with average monthly salary are:
|Average Monthly Salary (in USD)
Timor-Leste follows a monthly payroll cycle.
The minimum wage in Timor-Leste is USD 115 per month.
The standard working hours in Timor-Leste are 8 hours per day and 44 hours per week. If an employer requires their staff to work overtime, they must compensate the employees at 150% of their regular hourly wage.
The Labour Code of Timor-Leste does not mandate employers to pay 13th-month pay to their employees.
|Taxable income from
|Wages (for residents)
|Up to USD 500 per month
|More than USD 500 per month
|Wages (for non-residents)
|Other than wages (for residents)
|Up to USD 6,000 per year
|More than USD 6,000 per year
|Other than wages (for non-residents)
Timor-Leste does not have any standard Value-Added Tax policy.
Offboarding & Termination
An employer in Timor-Leste needs a valid reason to terminate an employment contract legally. In case of misconduct at the workplace, the employee can be terminated without compensation. Furthermore, termination due to unsatisfactory performance requires the employer to give at least 3 warnings (in both written and verbal forms). The employer must provide a written notice of termination to the employee.
The notice period in Timor-Leste varies as per the following table:
|Length of service
|3 – 6 months
|6 – 12 months
|1 year or more
Visa and Immigration
Any foreigner who wants to work at Timor-Leste must get a valid work permit before their first day of work. The permit is valid for a maximum of one year and employees can request multiple entries. The employee must visit an Embassy or Consulate of Timor-Leste in their home country, or ask their employer to contact the Department of Consular Affairs of the Ministry of Foreign Affairs in Dili, Timor-Leste.
Streamline payroll and compliance for your international workforce
The standard working hours in Timor-Leste are 8 hours per day and 44 hours per week. If an employer requires their staff to work overtime, they must compensate the employees at 150% of their regular hourly wage. Working on a public holiday or a rest day requires the employer to compensate at 200% of the employee’s regular hourly wage. In any case, the combined total of normal and overtime duration must not exceed 12 hours.