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
Local Universities
The top local universities in Tuvalu with ranks are mentioned below:
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 |
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.
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.
| 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 |
| Type of Leave | Time Period | Mandatory |
| Annual leaves | 12 days | Yes |
| Sick leaves | 5 days | Yes |
| Maternity leaves | 12 weeks | Yes |
Payroll
Payroll Cycle
Tuvalu follows a monthly payroll cycle.
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.
Overtime Pay
The standard working hours in Tuvalu are 8 hours per day and 40 hours per week.
Bonus
Tuvalu does not mandate 13th-month pay.
Taxes
| Contribution | Tax rate |
| Tuvalu National Provident Fund (TNPF) | 10% |
| Contribution | Tax rate |
| Tuvalu National Provident Fund (TNPF) | 13% |
Tuvalu imposes a flat rate of income tax at 30% on all income above USD 1,900.
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.
