Employer of Record in Micronesia

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Micronesia . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Micronesia.

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1. Grow your team in Micronesia with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Micronesia , particularly if you don't have established local relationships. You can hire employees in Micronesia effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Micronesia is a subregion of Oceania made up of around 2,000 tiny islands in the western Pacific Ocean. It shares a tight cultural history with three other island groups: the Philippines to the west, Polynesia to the east, and Melanesia to the south—as well as the larger Austronesian community.

The area is part of the Oceanian domain and has a tropical marine climate. It consists of four major archipelagos: the Caroline Islands, the Gilbert Islands, the Mariana Islands, and the Marshall Islands, as well as countless islands that are not part of any of the archipelagos.

Political control of places within Micronesia varies per island and is shared by six sovereign countries. Some Caroline Islands are part of the Republic of Palau, while others are part of the Federated States of Micronesia (commonly abbreviated as "FSM" or "Micronesia"—not to be mistaken with the similar name for the whole area). The Republic of Kiribati is made up of the Gilbert Islands, the Phoenix Islands, and the Line Islands in Polynesia. The Mariana Islands are associated with the United States, and some of them are owned by the United States. The territory of Guam and the remainder are owned by the United States. Northern Mariana Islands Commonwealth Nauru is a sovereign country in its own right. The Republic of the Marshall Islands owns all of the Marshall Islands. Wake Island's sovereignty is disputed; it is claimed by both the United States and the Republic of the Marshall Islands. The US holds real control of Wake Island, which is under the direct administration of the US Air Force.

Micronesia's human habitation started millennia ago. According to linguistic, archaeological, and human genetic evidence, the Micronesian people are a subset of the sea-migrating Austronesian people, which also includes the Polynesian and Melanesian people. According to current scholarly opinion, the Austronesian peoples descended from a prehistoric seaborne migration known as the Austronesian expansion, which occurred between 3000 and 1500 BCE from pre-Han Taiwan. Around 2200 BCE, Austronesians arrived in the northernmost Philippines, notably the Batanes Islands. Austronesians were the first to create ocean-going sailing technology (particularly catamarans, outrigger boats, lashed-lug boat construction, and the crab claw sail), allowing them to disperse quickly across the Indo-Pacific islands. They absorbed (or were assimilated by) the older people on the islands along their migratory route beginning about 2000 BCE.

The first documented European encounter with Micronesia occurred in 1521, when Spanish ships arrived in the Marianas. The name "Micronesia" is commonly attributed to Jules Dumont d'Urville in 1832, while Domeny de Rienzi used it a year earlier.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Micronesia is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Notice period

Probation period

Severance pay

6. Working hours

There is no information about the working hours for this country.

General working schedule

National law establishes a standard workday of eight hours, a five-day workweek, and a two-day weekend. This 40-hour workweek is the industry standard across the country.


While overtime pay is optional in Micronesia, the employer should provide an employee with an overtime payment that is greater than the employee's regular pay rate.

7. Minimum wage

There is no information about the minimum wage for this country.

The Federated States of Micronesia has established an hourly minimum salary for national government employees. Minimum wages vary by state, ranging from $2 in Pohnpei to $1.42 in Kosrae, $1.60 in Yap, and $1.25 in Chuuk.

This minimum wage applies only to government employees and is usually lower for private-sector workers. Remember that, although the minimum pay is much lower, the average hourly salary is $8.

8. Employee benefits

There is no information about the employee benefits for this country.

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.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

There is currently no information regarding taxation in Micronesia (Federated States of)

Individual income tax

There is currently no information regarding taxation in Micronesia (Federated States of)

VAT, GST and sales tax

There is currently no information regarding taxation in Micronesia (Federated States of)

10. VISA and work permits

There is no information about VISA and work permits for this country.

Micronesia is one of the world's most underappreciated tourist destinations. This Pacific Ocean group of islands is home to a diverse range of cultures. Micronesia's visa policy is unique for persons of all nationalities; nonetheless, it remains one of the world's most accessible destinations.

Micronesia provides a variety of visas, the most prevalent of which are tourist and business visas. Both of these visas are not necessary for members of certain countries visiting Micronesia for a single entrance (for a period of 30 days).

All you need to do to enter Micronesia from most countries is verify the validity of your passport. For the needed official approval, your valid passport must contain vacant visa pages. Finally, all travellers to Micronesia must research the transit visa requirements for their specific itinerary.

Micronesia also reached an agreement in 2016 that provides certain advantages to persons visiting from European nations. Citizens of Schengen-member countries may remain in Micronesia without a visa for up to 90 days under this provision.

When it comes to Micronesia visa rules, other nations offer even more loose limitations. These are the United States, the Marshall Islands, and Palau. Members possessing a passport from any of the above-mentioned nations are not need to get a visa to enter Micronesia. ID evidence is required for members from the United States, Palau, and the Marshall Islands. They may remain in Micronesia for a total of 365 days after they have proven their citizenship.

Visitors entering Micronesia will be required to report sums equal to $10,000 USD, according to the present visa regulation. There are no such currency limitations while departing Micronesia.

You may learn more about the travel authorisation procedure by visiting the closest Micronesia embassy. It is fairly simple to go to Micronesia under current regulations. When visiting Micronesia, all nations are free from the time-consuming visa application procedure, and certain countries offer additional perks in terms of finances and length of stay.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

In the United States, employment contracts might be verbal, written, or implicit. Contracts, on the other hand, should be in writing with the conditions clearly stated out to protect both the employer and the employee. In practice, the majority of contracts are in writing.

The following are examples of common employment contract terms:

Employer and employee names

The kind and scope of the service to be provided

Salary and payment intervals

Salary and payment intervals

Start and end dates (if for a fixed-term)

Benefits and leave entitlements

With Rivermate being your Employer of Record (EoR) in Micronesia, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

United States Dollar

13.Opening a subsidiary in Micronesia

There is no information about the working hours for this country.

How to set up a subsidiary

The first step in establishing a subsidiary is identifying the sort of firm you want to establish. The nation is open to a wide range of enterprises and does not require local inhabitants to share ownership of foreign-owned businesses. The following are the major corporate structures:

Sole proprietorships. Register as the sole owner of your company without the need for any local shareholders or co-owners when you choose a sole proprietorship.

Partnerships. Two or more persons or companies share the ownership of a local subsidiary with a partnership.

Limited liability companies (LLCs). Registering a LLC in this country offers exemption from corporate income taxes and provides protection.

After determining which sort of subsidiary best matches your objectives, goals, and budget, you'll begin by reserving your distinctive business name with the Registrar of Corporations.

Following that, you must legally notarize any business papers and submit your incorporation request to the Registrar. Your business name, objective, and term, as well as the number of shares, are normally included in the mandatory articles of formation. You will also be required to supply information about your company's address as well as the contact information for your directors.

Following the submission of these papers, you must:

1. Pay your registration and licensing fees at the finance office of your state government.

2. Obtain an incorporation certificate.

3. Inquire with your local municipality about obtaining a business license.

4. Apply for social security.

5. Document preparation and approval requests normally take at least two weeks.

Subsidiary laws

Micronesian subsidiary laws differ depending on the type of the firm and who owns it. A corporation that is completely controlled by a noncitizen or has more than 30% nonnational ownership must get a foreign investment authorization. Filling out the necessary documents, paying a fee, and submitting a full application to the Department of Resources and Development are all mandatory steps in applying for this permission. This foreign investment licence must be renewed on an annual basis for a charge ranging from $50 to $250 depending on the state in where your subsidiary is situated.

13. Why choose Rivermate as your Employer of Record / PEO in Micronesia

Establishing an entity in Micronesia to hire a team takes time, money, and effort. The labor law in Micronesia has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Micronesia 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 (EOR) solutions in Micronesia 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 Micronesia via our Employer of Record (EOR) / PEO solution.

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