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Samoa EOR & PEO

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Hire in Samoa

Samoa (formerly known as Western Samoa) is known for its agriculture, tourism, and traditional socio-political structure. The country is supported by the Samoa Pacific Resilience Project under the Pacific Resilience Program in a bid to strengthen the economy and guard against climate change. This has positively impacted the country’s nominal GDP of $844 million. In fact, Samoa’s GDP growth is expected to reach 4.2% in 2024 and 4% in 2025. Despite Samoa’s high inflation of 11.3% in March 2023, inflation rates are projected to decrease by 0.6% percentage points. With the government focused on upskilling through education and its desirable tax regimes, this small island country offers foreign businesses favorable employment opportunities. 

There has never been a better time to hire employees in Samoa. Learn how the Horizons Samoa Employer of Record (also known as Professional Employer Organization) solution can save you money and time on your Samoa hiring. 

Facts & Stats

EOR Platform

Hire in Samoa, and pay employees through our platform or app.

EOR Cost

Our Samoa EOR solution is the most affordable on the market.

Time-to-hire

Fast Samoa onboarding, hire in as little as 12 hours.

Contracts

We draft compliant Samoa labor contracts.

Local benefits

We manage all Samoa mandatory benefits.

180+ Countries

It doesn’t stop with Samoa — we hire employees globally.

hire employees in Samoa

What Is a Samoa EOR?

A Samoa Employer of Record can help you hire and run your business without having to set up a legal entity in the country. An EOR in Samoa keeps you compliant with tax and employment regulations such as minimum wage requirements, working hours, and staff leave.  An employer of record is a legal employer in Samoa, giving them the authority to oversee legal matters and payment processes without running day-to-day business operations. 

The terms Samoa Employer of Record and Samoa Professional Employer Organization (PEO) are usually used interchangeably. 

Save Money And Time with A Samoa EOR

What Are the Benefits of a Samoa EOR?

When you hire an EOR, a professional team will effortlessly manage the hiring, payroll, and legalities of part-time or full-time employment in Samoa. The EOR assists with negotiating employee wages and benefits on your behalf. This process ensures that the terms and conditions presented in the employment contract adhere to labor laws. It also protects your business from facing legal penalties in the country should you fail to meet the minimum employment requirements as per the Labour and Employment Relations Act 2013. EOR professionals can overcome language barriers in the Polynesian island country as Samoan is the national language, with only 15.2% of the population being English speakers. Ultimately, an EOR in Samoa helps you get past the red tape associated with starting a legal business entity in the region, so you can get your business up and running quickly. 

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Samoa EOR through:

  1. Strong presence in the Asia-Pacific region, meaning senior management are on the ground to deal with any issues.
  2. Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
  3. Cost-effective solutions. At $299 per employee, per month, no EOR in Samoa is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
  4. A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
  5. A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client.  Horizons is:
    • The only EOR doing this in-house — no subcontracting
    • The only EOR doing this without a retainer — clients are only charged upon success
    • The only EOR charging just a 2% fee per month
Step-by-step Samoa EOR

How Does a Samoa EOR Work?

The Samoa EOR acts as the negotiator and legal representative of the client company, with each adopting specific roles and responsibilities discussed below:

Employee

Employees are classified as Samoa residents interested in working for a foreign company. These individuals may already be registered with the EOR, or they may respond to an external job advertisement. Once the recruited individual is presented with a job offer, the employment contract terms are negotiated with the client company. Once a contract is signed with the EOR, it is recognized as the legal employer acting on behalf of the client company.

EOR

The Samoan EOR is a legally recognized entity allowing businesses the freedom to tap into the rich tourism, hospitality, and agricultural sectors of Samoa without the time and cost it takes to establish and register a business in the country. The EOR team will search for the most suitable job candidates in Samoa and facilitate the hiring process. Despite the EOR being the legal employer of the employee, it is the client company that must agree to contractual terms along with paying salaries, benefits, and taxes. The client company will pay the EOR for their services based on the agreed-upon rates.

Client Company 

As the client of the EOR, you are responsible for negotiating employment contracts, providing training where necessary, and monitoring employee performance. The client company, or employer, is represented by the EOR in Samoa. The employer of record makes it easier to hire Samoan workers if the client company doesn’t have a registered or legal entity in the country. Once the employee is hired and the employment contract is signed, the employer is responsible for monitoring and managing their performance. All expenses, such as social contributions, salaries, and deductions, are paid by the client company.

stay compliant with Samoa labor laws

Labor Laws

Samoa’s labor law is governed by the Labor and Employment Relations Act 2013 (LERA) and the Labor and Employment Relations Regulations 2016. When you work with an EOR in Samoa, they will ensure that your business is compliant with the provisions for national and foreign workers, from contracts of service and wage requirements to holidays, working hours, leave, contract terminations, and overtime. Samoa does have a 3 month probation period for new employees before hiring them as permanent staff. 

Employment contract types

In Samoa, the law that governs all types of employment contracts is the Labor and Employment Relations Act 2023. The most common employment contract is the Individual Employment Agreement (IEA), which describes the terms and conditions to be met between the employer and the employee. This particular contract details work hours, remuneration, job roles and responsibilities, and leave. For the IEA to come into effect, it must be signed by the Ministry of Commerce, Industry, and Labor, the employee, and the employer. It’s important to look at the differences between a fixed-term contract and a short-term or part-time contract, as each has different laws concerning dismissals and annual leave. Fixed-term contracts govern work positions over a timeframe of usually 1 year, whereas part-time contracts describe weekly work hours and any benefits that the employee and employer have agreed upon. 

Project-based

Probationary period

No probationary period.

Termination

At completion of the project.

Severance

Not applicable

Fixed-term

Probationary period

Typically up to 3 months.

Termination notice period

Varies depending on the contract's terms.

Severance

Not applicable

Indefinite

Probationary period

Typically 3 months to 6 months.

Termination notice period

Less than 1 year is 1 week
1 to 3 years is 2 weeks
More than 3 years is 4 weeks

Severance

Not specifically mandated, but redundancy payment can apply.

Working hours in Samoa

According to LERA 2013 sections 48, 49, and 50 and subsections (2) and (3), employees in Samoa must not work for more than 40 hours per week or more than 8 hours in one day. 

Overtime must be compensated in the following way:

For a regular workday:

150% of the standard hourly rate

For a rest day:

200% of the standard hourly rate

For a statutory holiday:

350% of the standard hourly rate

When employing workers in Samoa, Section 39 of LERA 2013 requires that they be paid their standard salary/wage on public holidays. Samoa celebrates a combination of international holidays, such as New Year’s Eve, Christmas, and Easter, along with religious holidays, including Holy Saturday, held on March 30th. Other traditions, such as White Sunday (Lotu a Tamaiti), fall on October 14th, and Samoa Independence Day is on June 1st.

 

DateHoliday name
1 Jan, 2024New Year’s Day
2 Jan, 2024Day after New Year’s Day
29 Mar, 2024Good Friday
30 Mar, 2024Day after Good Friday
1 Apr, 2024Easter Monday
13 May, 2024Mother’s Day
1 Jun, 2024Independence Day
12 Aug, 2024Father’s Day
14 Oct, 2024Lotu a Tamaiti
25 Dec, 2024Christmas Day
26 Dec, 2024Boxing Day

Paid time off

Vacations and time off in Samoa are governed by LERA 2013. Samoan employees are entitled to paid time off for sick leave and annual vacation time. Another type of paid time off is bereavement leave of 3 days. 

Under 1 year of employment

Pro-rata basis

1-10 years of employment

10 days of paid leave annually

10-20 years of employment

10 days of paid leave annually

20+ years of employment

10 days of paid leave annually

Sick leave in Samoa

All employees in Samoa must receive 10 days of sick leave per year that is fully paid. If they need extra time off, the employee is required to produce a medical certificate. 

Less than 6 months of sick leave:

Under 1 year of employment

10 days of paid leave annually

1-10 years of employment

10 days of paid leave annually

10-20 years of employment

10 days of paid leave annually

20+ years of employment

10 days of paid leave annually

Over 6 months of sick leave

Under 1 year of employment

Unpaid (unless otherwise specified in the contract or policies)

1-3 years of employment

Unpaid (unless otherwise specified in the contract or policies)

3+ years of employment

Unpaid (unless otherwise specified in the contract or policies)

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Samoa

Female employees who have completed at least 12 months of continuous service with their employer are eligible for 6 weeks of paid maternity leave, paid at the regular rate. 

There are no statutory provisions for paid paternity leave under the Labour and Employment Relations Act 2013. However, paternity leave may be provided based on company policies, collective agreements, or individual employment contracts.

Annual leave in Samoa

All employees must be provided 10 days of paid annual leave if they have worked a full year. For workers who have not completed a full year of service, Section 27 of LERA stipulates that they receive pro rata benefits based on the number of months they have worked for the company. 

Termination & severance in Samoa

If the employer wishes to proceed with the termination of an employee in Samoa, they must do so per the Employment Relations Act. A full-time employee with a permanent contract cannot be terminated without notice under Section 54. Notice ranges from 1 week to 8 weeks, depending on the senior position of the employee. In the case of casual workers in Samoa who have only worked for 2 months or for a season, their contracts can be terminated without notice. If an employee is guilty of gross misconduct, they can be dismissed immediately.

In Samoa, an employee’s severance pay depends on their length of employment. An employment period of less than 1 year does not qualify for severance, but workers who have provided continuous service for more than a year for the company can receive 4 weeks of pay plus 2 weeks for each additional year of service.

Samoa's compulsory social security contributions

Compulsory social security contributions are managed by the Samoa National Provident Fund (SNPF) at 20% of the employee’s gross salary contributed by the employer.

Samoa social security for foreigners

Social security contributions to the Samoa National Provident Fund (SNPF) apply to both local and foreign workers employed in Samoa.

Individual income tax

Individual income tax is administered by the Samoa Revenue Services (SRS). The tax rates and brackets are progressive, meaning that higher income levels are taxed at higher rates.

Health insurance

There is no compulsory national health insurance system similar to those found in many other countries. Public insurance are often subsidized or provided at low cost. Some employers may offer private health insurance as part of their employment benefits package.

hassle-free Samoan compensation & benefits

Compensation & Benefits

Samoa compensation laws

Samoans earn a minimum wage of WST 3.00, or $1.1 per hour. However, workers can benefit from overtime pay for weekdays and Saturdays of 150% of their regular wage. If you require an employee to work on a public holiday or a Sunday, they will be entitled to 200% of their regular wage as overtime pay. Understanding the costs of compensation can help your business.

13 month salary in Samoa

In Samoa, it is not mandatory to pay employees a 13th month salary. It is up to the discretion of the employer as to whether a bonus will be offered as an incentive, which often helps in attracting and retaining employees for long-term positions. 

Social security for Samoan nationals

Employers in Samoa are required to contribute to the national provident fund for their employees. The fund offers disability, retirement, and death benefits and is based on a percentage of the employee’s gross salary. 

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Hire in Samoa in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

Hiring an employer of record in Samoa can keep your employees happy and will go a long way toward protecting your business against expensive legal issues and fines because of poor compliance. An EOR in the South Pacific makes it easier to hire skilled and hardworking Samoans who are interested in working for an international company. They are familiar with labor laws, taxes, payroll, and compensation requirements that would otherwise prove complex for a foreign business to understand and implement. Simply put, a professional Samoan EOR assists in adhering to the country’s employment regulations, and they can advise on optional benefits such as health insurance and flexible work schedules to help you retain trusted and dedicated employees.

Having to work through sections and subsections of the Employment Relations Act in Samoa takes time. It would be challenging for foreign businesses to understand these requirements in a short period of time, increasing the risk of errors and non-compliance. EORs in Samoa are experienced in all aspects of the law, and they help their clients follow all outstanding employment regulations. From the fair treatment of employees to paying their salaries on time, every legal measure is handled by a qualified team. This includes handling the sensitive and often difficult process of terminating or dismissing an employee. You might not be aware of the dismissal steps that are followed, which increase the risk of lawsuits. Entrusting these matters to a Samoan EOR provides peace of mind that you are following the proper channels.

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