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Talent Wiki – Tuvalu

Your quick guide on talent and labor compliance norms in Tuvalu

Capital

Funafuti

Currency

Tuvaluan dollar

Languages

Tuvaluan, English

Payroll Frequency

Monthly

GDP per Capita

$5,335

Employer Tax

10%

Talent Overview

Tuvalu is a small island country in the South Pacific Ocean that relies mainly on subsistence farming and fishing. The local government controls the main sectors of the economy and has privatised many functions to invite investment. In 2021, the GDP of Tuvalu was USD 63 million, and the GDP growth rate was 3%.

Major economic hubs:

Funafuti, Savave Village

Skills in demand:

Doctors, Finance manager, Journalist

Mapo

Local Universities

The top local universities in Tuvalu are as follows:

Uni1

The University of South Pacific Tuvalu Campus

RANKING

Local:

World : 1001-1200

Salary Data

The below table mentions some common jobs with average monthly salary in Tuvalu:

No. Job Title Average Monthly Salary (in AUD) Average Monthly Salary (in USD)
1 Financial Manager 10,200 AUD 7,1055.43 USD
2 General Manager 9,040 AUD 6,297.40 USD
Talentsource 8

Talent Sourcing Tips

Top Local Job Boards:

Jobisland, Impactpoo

Number of LinkedIn users:

3,150

Employing in Tuvalu

The Labour and Employment Relations Act 2017 provides regulations on workplace conduct and disputes in Tuvalu. All employers and employees must know about the rules highlighted in the Act to ensure full compliance. The sections below cover the major aspects of the Act.

Employee Contract

Employees hired for a duration of more than 90 days must be given a written employment contract. The document must be signed by both parties in the presence of the Commissioner, who is also responsible for attesting the document.

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
13 Mar Commonwealth Day Public Holiday
7 Apr Good Friday Public Holiday
10 Apr Easter Monday Public Holiday
15 May Gospel Day Public Holiday
10 Jun Anniversary of the Birthday of the Sovereign Public Holiday
7 Aug National Children’s Day Public Holiday
1 Oct Tuvalu Day Public Holiday
2 Oct Day off for Tuvalu Day Public Holiday
2 Oct Tuvalu Day Holiday Public Holiday
3 Oct Day off for Tuvalu Day Holiday Public Holiday
13 Nov Heir to the Throne’s Birthday Public Holiday
25 Dec Christmas Day Public Holiday
26 Dec Boxing Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual leaves 12 days Yes
Sick leaves 5 days Yes
Maternity leaves 12 weeks Yes

 

Payroll

Payroll 1

Payroll Cycle

Tuvalu follows a monthly payroll cycle.

Payroll 2

Minimum Wage

Tuvalu has a minimum wage of TVD 3 – TVD 4,000 for public sector employees. The private sector in the country has no minimum wage limit.

Payroll 3

Overtime Pay

The standard working hours in Tuvalu are 8 hours per day and 40 hours per week.

Bonus

13th Month Pay

Tuvalu does not mandate 13th-month pay.

Employee Benefits

  • Paid leaves
  • Private health insurance

Taxes

Employer Payroll Tax

Contribution Tax rate
Tuvalu National Provident Fund (TNPF) 10%

Employee Payroll Tax

Contribution Tax rate
Tuvalu National Provident Fund (TNPF) 13%

Employee Income Tax

Tuvalu imposes a flat rate of income tax at 30% on all income above USD 1,900.

VAT

The standard rate of Value-Added Tax in Tuvalu is 7%.

Offboarding & Termination

Fixed and project-based contracts are terminated automatically after the period expires or the task is completed. However, employers need a lawful reason (redundancy, employee misconduct or unsatisfactory performance) before terminating an indefinite contract in Tuvalu.

In the absence of a specified notice period in the employment contract, employees in Tuvalu must serve a minimum of one week’s notice.

Every employer must credit all remaining financial dues, the notice period pay, and compensate the accrued but untaken annual leaves to the terminated employee. The final amount must be credited to the employee within 14 days of termination.

Visa and Immigration

Tuvalu has a welcoming visa policy and allows EU and Schengen zone nationals to enter simply with their passports and an entry fee. Citizens of other countries must visit the embassy or consulate for a visa, after which they can live and work freely.

Visa 8
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Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration