Employer of Record in Palau

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Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Palau . 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 Palau.

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

Payroll, benefits, taxes, and compliance can be difficult to manage in Palau , particularly if you don't have established local relationships. You can hire employees in Palau 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

Palau is an island republic in the western Pacific, officially known as the Republic of Palau (Palauan: Beluu er a Belau) and traditionally known as Belau, Palaos, or Pelew. The country consists of around 340 islands and links the western chain of the Caroline Islands to sections of the Federated States of Micronesia. It covers an area of 466 square kilometers (180 square miles). Koror is the most populated island, and it is home to the country's largest city of the same name. Ngerulmud, the capital of Melekeok State, is situated on the adjacent island of Babeldaob. Palau has international seas to the north, the Federated States of Micronesia to the east, Indonesia to the south, and the Philippines to the northwest.

Approximately 3,000 years ago, settlers from Maritime Southeast Asia established in the nation. The Czech missionary Paul Klein initially depicted Palau on a European map based on a description provided by a group of Palauans stranded on the Philippine coast on Samar. In 1885, the Palau Islands were included into the Spanish East Indies. Following Spain's loss in the Spanish–American War in 1898, the islands were ceded to Germany in 1899 as part of the German–Spanish Treaty and governed as part of German New Guinea. Following World War I, the League of Nations included the islands in the Japanese-ruled South Seas Mandate. During World War II, as part of the Mariana and Palau Islands campaign, American and Japanese forces fought skirmishes, including the main Battle of Peleliu. Palau, along with the other Pacific Islands, became a member of the US-governed Trust Territory of the Pacific Islands in 1947. After rejecting membership in the Federated States of Micronesia in a referendum in 1978, the islands obtained complete sovereignty in 1994 via a Compact of Free Association with the United States.

Palau is a presidential republic in free association with the US, which provides military, finance, and access to social services. The bicameral Palau National Congress has legislative authority. Palau's economy is mostly centered on tourism, subsistence agriculture, and fishing, with foreign assistance accounting for a major share of the gross national product (GNP). The United States dollar is the country's currency. The culture of the islands combines Micronesian, Melanesian, Asian, and Western components. The bulk of the people is of mixed Micronesian, Melanesian, and Austronesian ancestry. Japanese ancestry constitutes a minor share of the population. Palauan (an Austronesian language) and English are the country's two official languages, with Japanese, Sonsorolese, and Tobian recognized as regional languages.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Palau 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

To terminate an employee prior to the expiration of their contract, various processes must be followed, including presenting the employee with written notice and a copy of the notification to the Bureau of Labor and Human Resources. The written notice should include the employee's name, the employee's identification certificate number, and the cause for termination. Employers are required to compensate employees for work accomplished, regardless of whether they are local or nonresident employees.

Notice period

Any contract's notice period is agreed upon at the outset.

Probation period

All probationary employees must remain in this status for six months from the start of their initial employment.

Severance pay

There are no provisions regarding severance payment but the employee should be paid for any work they have completed before termination.

6. Working hours

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

General working schedule

Palau's labor laws make no provision for a maximum number of working hours or for overtime pay. The typical workweek is 40 hours.


Overtime is not specifically regulated. However, due to a lack of specific regulations, employers may require employees to work longer shifts without compensating them for overtime. While this approach is unlikely to have legal consequences, the employer may face problems with employee satisfaction and their reputation as a fair employer.

7. Minimum wage

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

In Palau compensation rules are a hotly debated issue. The current legal minimum hourly pay is $3.50. This minimum wage applies exclusively to citizens and excludes specific job sectors, such as domestic labor, agricultural work, non-governmental organizations, and student employees. A full-time local worker earns around $2,730 per month on average.

8. Employee benefits

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

Palau has a comprehensive national health-care system that covers more than 95 percent of the population. Even the minority of people who are uninsured will get government assistance in an emergency. The national health insurance system mandates both employers and workers to pay 2.5 percent to the insurance plan, for a total of 5 percent. The insurance covers all workers in both the public and private sectors, regardless of nationality. Retirees are also included.

There are no criteria for benefits or incentives in this nation. However, you are allowed to provide additional remuneration as long as it is consistent with your budget, objectives, and beliefs.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

There is currently no information regarding taxation in Palau.

Individual income tax

There is currently no information regarding taxation in Palau.

VAT, GST and sales tax

There is currently no information regarding taxation in Palau.

10. VISA and work permits

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

To visit Palau, you will require a visa and a valid passport, according to the Palau visa policy criteria. Your passport must be valid for at least six months after your visit to Palau. Many extra papers will be required to support your visa application form.

Your passport should also contain two vacant visa pages, according to Palau visa regulations. This is just for emergencies or if you are passing through Palau. You will also need to demonstrate your capacity to support oneself financially while in Palau. The Palau visa policy requires all travelers to adhere to the currency limits. As of today, you must disclose a minimum of $10,000 USD before entering Palau. This is a critical stage in the approval of your visa application.

There are several ways to spend your spare time in Palau. You may have previously planned your trip and filed for a Palau visa at the closest Palau embassy in your home country. However, you should be aware that there are alternative methods to visit Palau without having to go through the inconvenience of visiting the Palau embassy.

Palau visa policy permits certain nations to get a Palau visa upon arrival in the country. You must still provide supporting documentation and offer information about the purpose of your travel.

With the aid of this Palau visa on arrival travel permit, you will be allowed to remain in Palau for a maximum of 30 days. The Palau visa policy, on the other hand, permits you to prolong your stay in Palau with this visa. You may extend your trip twice, but you must pay the relevant visa application expenses both times.

It is not difficult to begin the Palau visa application procedure. After you arrive in Palau, you must guarantee that you have verified to see whether your nation is permitted to receive a tourist visa. You will also be asked to declare your bank statement to demonstrate that you have the bare minimum of funds to support yourself in Palau (the amount is roughly 200 USD for every week of your Palau trip).

11. Employer Of Record service terms

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

Employment contracts

In most cases, employment contracts are in writing. The following information should be included in standard recognized employment contracts:

Occupational title

The employment contract's tenure

The position's location A schedule that includes the needed weekly hours

Wages for both regular and overtime work Any deductions for living expenses

With Rivermate being your Employer of Record (EoR) in Palau, 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 Palau

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

How to set up a subsidiary

A range of stages are involved in the Palau subsidiary formation procedure. First, you must decide what kind of entity you wish to register. You have the option of forming a sole proprietorship, a partnership, or a limited liability corporation (LLC).

Once you've selected what kind of corporation would work best for you, proceed with the following procedures to officially register your company in-country:

1. Deposit the necessary capital into a local bank account and keep a record of the deposit.

2. Reserve your company's name with the Attorney General's Office's Corporate Registrar.

3. Hiring an attorney to write and notarize your articles of incorporation is a good idea. Your company's name, location, purpose, shares, directors, length, incorporators, and details of any local or noncitizen ownership must all be included in these forms.

4. Pay the Bureau of National Treasury a registration fee.

5. Obtain a certificate of incorporation by registering your firm with the Corporate Registrar.

After receiving the certificate, you may get an employer identification number and begin enrolling workers in social security. The last step in establishing a successful subsidiary is to apply for and pay for a business license from the state government.

Subsidiary laws

There are a few things to think about while establishing a subsidiary in Palau. To begin the incorporation procedure, for example, you will need to deposit funds in a local bank. However, you will not be able to create a business bank account until you have received the proper incorporation paperwork. To comply with local legislation, you must create a personal bank account or put the capital in your local attorney's trust account.

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

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

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