Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Australian Dollar
Ease of doing business
Tuvaluan English
GDP growth

02. Grow your team in


with Rivermate

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


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


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

Tuvalu is a Pacific Ocean island nation in the Polynesian subregion of Oceania. Its islands are located in the middle of the Pacific Ocean, roughly halfway between Hawaii and Australia. They are northeast of Vanuatu, southeast of Nauru, south of Kiribati, west of Tokelau, northwest of Samoa and Wallis and Futuna, and north of Fiji. Tuvalu is made up of six atolls and three coral islands. They are located between 5° and 10° south latitude and 176° and 180° longitude, respectively. They are located to the west of the International Date Line. Tuvalu's population is 10,507 people. Tuvalu's islands cover a total land area of 26 square kilometers. According to well-established hypotheses about a three-thousand-year-old migration of Polynesians into the Pacific, the first inhabitants of Tuvalu were Polynesians. Polynesians often traveled between islands by canoe long before European contact with the Pacific islands. Scholars agree that the Polynesians spread out from Samoa and Tonga into the Tuvaluan atolls, which then acted as a stepping stone for further migration into the Polynesian outliers in Melanesia and Micronesia.In 1568, Spanish navigator lvaro de Mendaa became the first European to visit the Polynesian outliers in Melanesia and Micronesia. In 1819, Funafuti's island was renamed Ellice's Island. The name Ellice was later applied to the entire nine-island group after the work of English hydrographer Alexander George Findlay. As a result of a treaty between Great Britain and Germany that demarcated their respective spheres of influence in the Pacific Ocean, Great Britain asserted sovereignty over the Ellice Islands in the late 19th century, designating them as within their sphere of influence. Captain Gibson of HMS Curacoa proclaimed each of the Ellice Islands a British Protectorate between October 9 and 16, 1892. As part of the British Western Pacific Territories, Britain appointed a resident commissioner to oversee the Ellice Islands. They were governed as part of the Gilbert and Ellice Islands colony from 1916 to 1975. In 1974, a referendum was held to decide if the Gilbert Islands and Ellice Islands should be administered separately. The Gilbert and Ellice Islands colony legally ceased to exist on 1 October 1975, and the old administration was formally separated on 1 January 1976, resulting in the creation of two independent British colonies, Kiribati and Tuvalu. Tuvalu gained full independence as a sovereign state within the Commonwealth on October 1, 1978. Tuvalu became the 189th member of the United Nations on September 5, 2000.

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

Notice period

Severance pay

Probation period

07. Working hours


On the islands, the standard workday is eight hours, though regulations vary. The Labor Commissioner establishes the working days and hours for specific jobs and industries. Employers must discuss the task at hand with task workers to determine if it qualifies as an eight-hour day and should be treated as such.


Overtime hours and pay must be agreed upon in the employment contract between the employer and employee.

08. Minimum wage


Tuvalu has no minimum wage set for the private sector. Tuvalu's minimum wage rate is A$3,00- A$ 4,000 for workers in the public sector.

09. Employee benefits


Because health care in the nation is publicly financed, labor rules do not compel businesses to offer health insurance plans. If an employee is injured while on the job, the employer is obligated to pay any medical costs.

In certain cases, the Health Officer may compel an employer to have a hospital or sickroom on the premises. This scenario is dependent on the number of employees and the type of the job. These combinations may include:

A room designed for sick employees capable of holding 10 percent of the workforce

A separate building equipped as a hospital with a capacity for 10 percent of the workforce

Services from a health care professional

The employer will cover these expenses in full if the Health Officer requires it.

Tuvalu labor rules do not specify whether or not incentives are needed for workers, but employers are free to give them as they see appropriate.

Employees who work away from home may be eligible for additional benefits in certain circumstances. In addition to the employer-provided free repatriation, these employees must be provided with accommodation as part of their job contract. This home should be able to accommodate any dependents the employee may have.

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

Establishing an entity in


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


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


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


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


via our Employer of Record / PEO solution.

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