Guide to employment, payroll and benefits in

Nauru

Rivermate offers complete payroll, benefits and compliance services for

Nauru

01. Overview

Last updated: 

August 19, 2021

Currency
Australian Dollar
Capital
Yaren
Ease of doing business
Language
English
Population
10824
GDP growth

02. Grow your team in

Nauru

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Nauru

, particularly if you don't have established local relationships. You can hire employees in

Nauru

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

The Republic of Nauru, formerly known as Pleasant Island, is an island nation and microstate in Oceania's Central Pacific region. Banaba Island in Kiribati, 300 kilometers to the east, is its closest neighbor. It is also located northwest of Tuvalu, 1,300 kilometers northeast of the Solomon Islands, east-northeast of Papua New Guinea, southeast of Micronesia, and south of the Marshall Islands. Nauru is the smallest republic in the world, with a land area of only 21 km2. It is the world's third smallest nation, after Vatican City and Monaco. It also has the world's second-smallest population, after Vatican City, with a population of 10,670 people. Nauru was conquered and claimed as a colony by the German Empire in the late 19th century, after being settled by people from Micronesia and Polynesia around 1000 BC. Nauru became a League of Nations mandate governed by Australia, New Zealand, and the United Kingdom after World War I. During World War II, Japanese forces invaded Nauru, which was bypassed by the Allied invasion across the Pacific. The country was put under UN trusteeship after the war ended. In 1968, Nauru achieved independence, and in 1969, it joined the Pacific Community. Nauru is a phosphate-rock island with abundant deposits near the surface, making strip mining relatively simple. Extraction of the remaining phosphate resources is not commercially feasible. The trust that has been formed to manage the island's resources has lost value after the phosphate reserves were depleted in the 1990s and the island's ecosystem had been severely harmed by mining. Nauru briefly became a tax haven and an illegal money laundering center in order to make money. It accepted funding from the Australian government in return for hosting the Nauru Regional Processing Centre, a notorious offshore Australian immigration detention center, from 2001 to 2008, and again from 2012. Because of its reliance on Australia, some reports have labeled Nauru as an Australian client state. The United Nations, Commonwealth of Nations, and African, Caribbean, and Pacific Group of States are all members of the sovereign state.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

A contract employee's employment may be terminated in accordance with the contract's terms and conditions.

Notice period

A probationary employee must be given one week's notice of termination or a severance payment equal to the employee's weekly salary. Regular employees who are terminated for misconduct must be given four weeks' notice or an amount equal to the employee's salary for a four-week period.

Severance pay

Over a twelve-week period, the employee must be paid an amount equal to his or her salary.

Probation period

The appointment is contingent upon a six-month probationary period, the purpose of which is to ascertain the individual's suitability for the position.

07. Working hours

General

Overtime

08. Minimum wage

General

Nauru does not have a minimum wage.

09. Employee benefits

General

In each of the country's four states, the state government heavily subsidizes medical and public health services. This includes giving free or low-cost access to any of the country's public hospitals or health facilities. Residents may also opt to go to a private facility if they choose, but they will have to pay for it out of pocket or via their medical insurance.

You are not obliged to offer medical insurance to workers because of the extensive and inexpensive public health care system. However, as part of your extra benefits package, you may wish to include an insurance package.

While you must pay workers at least the minimum wage, you are not required to offer incentives or other perks. However, cash incentives of about 5% of an employee's yearly pay are often anticipated. These monetary incentives may take the shape of performance-based bonuses, business performance bonuses, goal fulfillment bonuses, and holiday or yearly bonuses.

It is customary, but not necessary, to provide extra perks like as housing stipends, travel cost reimbursement, or free meals. Incorporating these types of perks and bonuses into your employment contracts may aid in the creation of a good work environment in which your workers feel pleased and appreciated. It may also help you improve your reputation in-country as an appealing and competitive employer.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Nauru

to hire a team takes time, money, and effort. The labor law in

Nauru

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Nauru

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Nauru

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Nauru

via our Employer of Record / PEO solution.

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