Find your employer of record in Micronesia

In each region of Micronesia, public health and medical services are fully subsidized by the state government. Likewise, public hospitals and health centers in the country have free or low-cost access.

On the other hand, citizens can attend a private medical center as a preference, however, they must pay for it with their funds or with the help of health insurance. Also, companies are not required to offer health insurance to employees due to the health care system of the country.

However, with a PEO your business can include an insurance package as an added benefit. In addition, companies are not required to offer incentives or services to workers, but they must pay a minimum wage. In the same way, workers who have good performance, business productivity, and goal fulfillment receive bonuses.

Generally, the incentives that companies grant are around 5% of the minimum annual salary of the employee. Likewise, companies can offer additional benefits, such as housing payments, and reimbursement of travel expenses and meals. Likewise, PEO services can manage every benefit that the company can provide efficiently.

Anyone can enter the Federated States of Micronesia without the requirement of a visa. Generally, the stay for foreigners can last between 30 and 365 days. In this case, a US citizen can stay in Micronesia for up to one year. However, citizens of Schengen Area countries can only stay for 90 days.

On the other hand, travelers from other areas may stay in Micronesia for 30 days, extendable up to 60 days. In addition, the only requirement is to have a passport valid for 120 days from the date of arrival.

On the other hand, foreigners who must stay in the Micronesian regions for work or business must have a permit before the trip. You may also apply for a permanent stay and work permit by writing to the Federated States of Micronesia Department of Resources and Development.

In this case, the department may request some documentation such as the official job invitation from the contracting company or a birth certificate. All these procedures for employees can be carried out with an EOR.

In Micronesia, the VAT rate is between 3% and 5% according to the regulations of each state.

Termination Process

In Micronesia, employers can terminate the employment contract of a worker without liability. In the same way, workers can terminate the employment contract without obligations. However, an employer may terminate an employee based on just cause.

In addition, all these processes can be managed by an Employer of record in Micronesia.

Notice Period

Workers with 1 year of service or more will have a notice period of 30 days for the termination of their contract. Through a professional employment organization, you can manage this period efficiently.

Severance Pay

After dismissal, an employee will receive 15 days of compensation for each year that he worked in the company. On the other hand, an Employer of Record in Micronesia can take care of the compensation management of the employees of your company.

Probation Period

Workers typically go through a 6-month trial period, which you can manage with HR and payroll outsourcing.

Paid Time Offs

In Micronesia, there is no evidence of paid vacations for workers, although universities usually grant 2 months' leave.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 0 vacation holidays throughout the year.

Sick Days

There is no established sick leave in the territory.