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Overview
Dollar Tuvaluan (TVD)
CURRENCY
Funafuti
CAPITAL
monthly
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
0 to 10
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Tuvalu
Employer
Company Payroll Contributions
0% - 10%
Tuvalu National Provident Fund (TNPF)
0% - 10%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 13%
Tuvalu National Provident Fund (TNPF)
0% - 13%
Total Employee Cost
Employee Income Tax in Tuvalu
Worker Income Taxes
30%
Fixed-rate for income above TVD 1900
Minimum Wage in Tuvalu
General
The minimum wage in Tuvalu is TVD 3,000 – TVD 4,000 for public sector workers. However, in the case of the private sector, there is no established minimum wage. Additionally, with an Employer of Record in Tuvalu, you can manage and pay the salary of your employees.
$2,006 Minimum Wage per month
Payroll Contributions in Tuvalu
Payroll Cycle
With payroll outsourcing, you can safely cancel the monthly payroll cycle in Tuvalu.
13th Salary
In Tuvalu, employment laws do not require 13-month pay.
Employee Benefit in Tuvalu
Visa and work permit in Tuvalu
The welcome visa policies in Tuvalu allow EU and Schengen zone citizens to enter with few requirements. Therefore, citizens of the mentioned regions can enter only with a valid passport and an entrance fee.
On the other hand, foreigners from other countries must go to an embassy or consulate to obtain a visa. Likewise, foreigners can apply for a stay visa to live and work freely. Also, to make this process easier for your employees, you can apply for a visa with an Employer of Record in Tuvalu.
VAT in Tuvalu
Tuvalu has a standard aggregate tax rate of 7%.
Working Hours in Tuvalu
General
The working hours of employees in Tuvalu do not exceed 8 hours per day or 40 hours per week. Additionally, PEO services not only allow you to hire employees but help you manage these working hours.
Overtime
As established in labor laws, the overtime payments made by a worker depending on the employment contract. In addition, these agreements include work carried out on weekends and holidays. However, employees who work annually are included in the payment for overtime.
However, the payment made includes compensation for the probability of overwork by said employees. In this case, a PEO can help you manage overtime payments to your employees in Tuvalu.
Working Week
Monday to Friday.
Employee Termination in Tuvalu
Termination Process
A permanent or contracted worker for projects ends his work at the expiration of the contract period or at the end of the task to be carried out. On the other hand, workers can be fired for a legal reason, such as dismissal for misconduct or unsatisfactory performance. In this case, an Employer of record in Tuvalu can assist you in these processes.
Notice Period
There is no general notice period requirement in Tuvalu in employment contracts. Otherwise, workers must notify the resignation with a minimum notice of 1 week. On the other hand, an employer may agree to payment instead of notice for a contract terminated for a legal reason under labor laws.
Also, with HR and payroll outsourcing, all these notification and payment procedures are easier and more optimal.
Severance Pay
The employer must make a payment for financial fees not taken by the employee. In addition, it must include the payment of the notice period and compensation for unused accrued annual vacations.
Likewise, the employer must make the payment of the compensation calculation within 14 days of the termination of the contract. Thus, with payroll outsourcing services, these calculations and payments are easier for you.
Probation Period
There are no sections in the labor laws of the country that define a probationary period for employees.
Employee Leaves in Tuvalu
Paid Time Offs
An EOR will be able to manage the annual leaves paid to the employees of your company securely. Thus, in Tuvalu, a worker with a permanent contract can receive a minimum of 12 days of paid annual leave per year. Likewise, when an employee works on rest time, the employer must pay them for those days of leave.
On the other hand, workers can have pro-rata vacation days for completing 6 months of permanent work with the employer. In addition, when a holiday falls within the days of leave, the employer will not include said day in the leave of absence.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 12 vacation holidays throughout the year.
Sick Days
Due to injury or illness, a worker may receive 5 days of sick leave for each year of service. In this case, a Professional Employment Organization can handle the sick leave payments in a business. Additionally, the employee must receive remuneration for the days of leave he receives.
Paternity Leave
By hiring an Employer of record in Tuvalu, you can more efficiently manage parental leave. Generally, workers in Tuvalu can receive 10 days of paternity leave for the birth or adoption of the child. In addition, the employer must pay 100% of the minimum salary for the days of leave that the worker would have earned if he had not been absent.
However, the employee must present a medical certificate showing the approximate day of birth of the child. Also, if it is by adoption, the employer must abide by the Child Adoption Act of 1986. Likewise, paternity leave must be used by the employee within 4 months after the birth or adoption of the child.
Paternal Leave
In this case, no law requires companies to provide Parental Leave.
Other Leave
In Tuvalu, employers can issue humanitarian leave to employees. Therefore, a worker can receive 3 days of paid compassionate leave for each year of service to the company. In addition, the license applies in case of bereavement or life-threatening illness of a close family member. Likewise, the employer must remunerate the employee during the leave period for humanitarian reasons.
Maternity Leave in Tuvalu
In Tuvalu, pregnant employees can receive 12 weeks of maternity leave. Likewise, the worker must take leave around the approximate period of the birth of the child. In addition, you must present a medical certificate with the expected date of delivery.
On the other hand, the employer must pay the employee 100% of the salary that she would have earned if she had not been absent from work. Similarly, an employee in the adoption process will receive leave under the Child Adoption Act of 1986. Therefore, female workers who adopt may receive 12-week leave after receiving the child.
However, the license will only be issued when the adoptive child is under 3 years of age. Likewise, the worker must receive 100% of the salary for the days of leave under the labor laws.
There are 98 leave throughout the year.