Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Vanuatu Vatu
Ease of doing business
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

Vanuatu is an island nation in the South Pacific Ocean, formally known as the Republic of Vanuatu. The archipelago is located 1,750 kilometers east of northern Australia, 540 kilometers northeast of New Caledonia, east of New Guinea, southeast of the Solomon Islands, and west of Fiji, and is volcanic in origin. Melanesian people were the first to settle on Vanuatu. A Spanish expedition led by Portuguese navigator Fernandes de Queirós arrived on the largest island, Espiritu Santo, in 1606 and became the first Europeans to visit the islands. As part of the colonial Spanish East Indies, Queirós claimed the archipelago for Spain and called it La Austrialia del Espritu Santo. Parts of the archipelago were claimed by France and the United Kingdom in the 1880s, and in 1906, they settled on a arrangement for jointly managing the archipelago as the New Hebrides via an Anglo-French condominium. In the 1970s, an independence movement emerged, and the Republic of Vanuatu was founded in 1980. The country has joined the United Nations, Commonwealth of Nations, Organisation internationale de la Francophonie, and Pacific Islands Forum since gaining independence.

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


In Vanuatu, the maximum workweek is six days and 44 hours without overtime. Each week, employees receive one day off. While this day is typically Sunday, employers may choose a different rest day to recognize in their employment contract. A workday, excluding overtime, cannot exceed eight hours.


If an employee works on Sundays, he or she must be compensated at 150% of their regular rate. On a typical workday, the first four hours of overtime should be paid at 125 percent of the regular rate, and any additional hours should be paid at 150 percent. During the evening hours, which are defined as 8 p.m. Workers must receive 175 percent of their standard rate between 4 a.m. and 8 a.m.

08. Minimum wage


Vanuatu's Minimum Wage rate is VT220 per hour.

09. Employee benefits


Private health insurance is scarce in the nation and is usually reserved for expats. There is no social healthcare system in the islands, although there are public hospitals.

Employers are responsible for providing medical insurance to their workers as required, and the Minister will establish a suitable premium based on the circumstances. This medical coverage covers on-the-job injuries as well as illnesses or injuries that occur off-the-job. If an employee lives on the company's property with their family, the employer is also liable for their medical care.

The labor rules do not specify any extra perks or incentives, but employers may opt to offer more at their discretion.

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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