Solomon Islands EOR & PEO

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Hire in Solomon Islands

Are you wondering what it’s like to hire employees in the Solomon Islands? This Pacific island nation, with a population of just over 700,000, provides an interesting and exciting place for businesses that are looking to expand their operations. The Solomon Islands’ economy is mainly based on agriculture, forestry, and fishing, but it’s also seeing a great deal of growth in tourism and other small-scale industries. This mix provides a diversified talent pool for businesses with their eye on expansion.

The country is rich in natural beauty and has a deeply rooted cultural heritage, which makes it an attractive place for people to live and work. There have been a great deal of recent efforts made to improve infrastructure and business regulations, which are making it easier for companies to set up and operate here. For example, the government has been working on improving internet connectivity and transportation, which are essential for business operations.

When hiring in the Solomon Islands, understanding local labor laws and employment practices is very important, however it can also be challenging. Partnering with a local Employer of Record can help with these issues. An EOR takes care of the legal and administrative aspects of hiring, allowing you to focus on finding the right people for your team. By using an EOR, you can tap into the potential of the Solomon Islands without the hassle of having to establish a local entity.

Facts & Stats

hire employees in Solomon Islands

What Is a Solomon Islands EOR?

Have you heard about EOR services before and are wondering how it may be able to help your business? A Solomon Islands Employer of Record (EOR) is a third-party company that takes on the legal responsibilities of employing workers in the Solomon Islands on behalf of your business. This means they handle everything from payroll and taxes to benefits and compliance with local labor laws. The EOR becomes the official employer for your team in the Solomon Islands, while you still manage their day-to-day tasks and performance. This setup allows you to expand your business into the Solomon Islands without needing to establish a local entity.

The terms “Employer of Record” and “Professional Employer Organization” (PEO) are usually used interchangeably and mean the same thing. Both refer to companies that manage HR tasks and legal responsibilities for other businesses. By partnering with an EOR or PEO, you can streamline your hiring process and ensure compliance with all local laws, making it easier to manage your workforce in the Solomon Islands.

Save Money And Time with A Solomon Islands EOR

What Are the Benefits of a Solomon Islands EOR?

Using a Solomon Islands Employer of Record comes with a bunch of benefits that can make expanding your business much simpler and less stressful.

Takes care of all the legal and administrative tasks: This means you don’t have to worry about managing payroll, handling taxes, or ensuring compliance with local labor laws. The EOR does it all, allowing you to focus on your core business activities.
Hire local talent: Setting up a local entity can be time-consuming, but with an EOR, you can quickly onboard new employees without having to establish a formal presence in the Solomon Islands. This flexibility allows you to scale your operations up or down based on your business needs without the hassle of dealing with any of the local bureaucracy.
Helps manage the risks associated with employment: They stay up-to-date with any changes in labor laws and ensure that your business remains completely compliant, reducing the risk of fines and legal issues. This is very important in a country like the Solomon Islands, where local regulations might be unfamiliar to foreign businesses. Plus, the EOR handles all employment contracts, making sure they are legally sound and fully customized to meet all of the local standards.
Impact on employee satisfaction: By managing benefits like health insurance and retirement plans, the EOR ensures that your employees receive the perks they deserve, which can improve morale and retention rates. The EOR can also provide support with employee onboarding and offboarding, ensuring a smooth transition for new hires and departing staff.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Solomon Islands EOR through:

A strong regional presence in the Asia-Pacific region, meaning senior management are on the ground to deal with any issues.
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.
Cost-effective solutions. At $499 per employee, per month, no EOR in Solomon Islands is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
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
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 Solomon Islands EOR

How Does a Solomon Islands EOR Work?

Hire your employees: A Solomon Islands Employer of Record makes hiring new employees easy and hassle-free. You select the candidates you want to hire, and the EOR takes care of all the legal paperwork and formalities. They become the official employer on record, handling everything from contracts to compliance. This allows you to focus on finding the right talent without worrying about anything else.
Manage employment contracts and onboarding: The EOR takes charge of drafting and managing employment contracts to ensure they comply with Solomon Islands’ labor laws. They handle all the necessary documentation, making sure everything is legally sound. The EOR also oversees the onboarding process and ensures new hires have all the necessary information and tools they need to start their jobs. This helps new employees feel welcome and prepared from day one.
Process payroll and handle employment taxes: Handling payroll can be complicated, but a Solomon Islands EOR makes it simple. They manage all aspects of payroll, which ensures your employees are paid the right amount, on time. The EOR calculates salaries, holds back the appropriate taxes, and handles any other deductions that are required by law. This ensures compliance with local tax regulations, freeing you from the administrative burden of managing payroll.
Administer benefits: An EOR also manages employee benefits, such as health insurance and retirement plans. They handle the enrollment process, manage contributions, and ensure that your employees receive all of their benefits. This helps you offer competitive benefits packages that attract and retain top talent. The EOR also deals with any issues or questions related to benefits, providing support to your employees and keeping them satisfied.
Take care of exit procedures: When an employee leaves your company, the EOR handles all aspects of the exit process. This includes managing the necessary paperwork, ensuring compliance with Solomon Islands’ laws regarding termination and severance, and processing final paychecks. The EOR also makes sure that any company property is returned and that post-employment obligations are clear. This careful handling of exit procedures protects your business and ensures a smooth transition for departing employees.

stay compliant with Solomon Islands labor laws

Labor Laws

One of the principal reasons for engaging an EOR in Solomon Islands is to ensure full compliance with Solomon Islands’ employment laws. Here we explain in detail how a Solomon Islands EOR ensures:

Compliance with Solomon Islands employment contract requirements
Compliance with working hours, national holiday provisions, and Solomon Islands social security requirements.

Employment contract types

In the Solomon Islands, employment contracts can be either permanent or fixed-term. Permanent contracts are for ongoing roles without a set end date, providing job security and long-term benefits such as health insurance and retirement plans. Fixed-term contracts are for a specific period or project, with a clearly defined start and end date. These contracts might be used for seasonal work or temporary projects. Both types of contracts must comply with local labor laws in order to ensure that all terms and conditions are fair and transparent for both the employer and employee.

Project-based

Fixed-term

Indefinite

Working hours in Solomon Islands

The standard working hours in the Solomon Islands are typically 40 hours per week, spread over five days. Most businesses operate from Monday to Friday, with each workday lasting eight hours. Employees are entitled to regular breaks, including a lunch break. If employees work more than the standard hours, it is considered overtime, which must be compensated at a higher rate, usually 1.5 times the regular hourly wage. This ensures that workers are fairly compensated for any extra time they put in.

Overtime must be compensated in the following way:

Holiday Schedule in Solomon Islands [2024]

On these days, employees typically get the day off with pay. If they need to work, they are compensated at a higher rate, often double their regular pay, allowing them to still appreciate these important holidays with their loved ones.

In 2024, the Solomon Islands will celebrate nine public holidays:

Date	Holiday name
1 Jan, 2024	New Year’s Day
29 Mar, 2024	Good Friday
30 Mar, 2024	Holy Saturday
1 Apr, 2024	Easter Monday
20 May, 2024	Whit Monday
14 Jun, 2024	King’s Official Birthday
7 Jul, 2024	Independence Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	National Day of Thanksgiving

Paid time off

Employees in the Solomon Islands are entitled to paid time off, which includes vacation leave, public holidays, and other forms of leave. Full-time employees generally earn a minimum of 15 days of paid vacation per year after completing one year of service. This equates to 1.25 working days for each completed calendar month of service.

Sick leave in Solomon Islands

Sick leave in the Solomon Islands allows employees to take time off when they are ill without losing pay. Full-time employees are usually given a minimum of 10 days of paid sick leave per year.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

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 Solomon Islands

The Employment Act and related labor regulations govern maternity and paternity leave entitlements.

Female employees are entitled to at least 12 weeks (3 months) of maternity leave. This leave can typically be taken as 6 weeks before the expected date of confinement (birth) and 6 weeks after the birth, although this can be adjusted based on the actual date of birth and medical advice.

There is no statutory provision for paternity leave under the current Employment Act in the Solomon Islands. However, some employers may offer paternity leave as part of their employment policies or through collective bargaining agreements.

Annual leave in Solomon Islands

Annual leave provides employees with a break from work to relax and spend time with family. In the Solomon Islands, full-time employees are entitled to a minimum of 15 days of paid annual leave each year after completing one year of service. Employers can choose to offer more, but 15 days is the legal minimum.

Termination & severance in Solomon Islands

Termination of employment in the Solomon Islands must follow specific legal procedures to ensure fairness. Employers must provide notice or payment in lieu of notice, with the notice period depending on the employee’s length of service. For employees with less than one year of service, the notice period is typically one week. For those with longer service, the notice period increases. Severance pay is required for employees terminated without cause, generally amounting to one week’s pay for each year of service. Employers must also provide a written reason for termination and follow due process to protect the rights of employees.

Solomon Islands' compulsory social security contributions

Social security is managed by the Solomon Islands National Provident Fund (SINPF). This fund provides retirement benefits and other financial protections to employees.

These contributions provide retirement benefits, withdrawal options, survivor benefits, and potential housing loans for employees. Employers are responsible for registering employees and ensuring timely remittance of contributions to the SINPF.

Solomon Islands social security for foreigners

The compulsory social security contributions to the Solomon Islands National Provident Fund (SINPF) apply to both local and foreign employees working in the Solomon Islands.

Foreign employees are entitled to the same benefits as local employees, and employers must ensure compliance with the SINPF regulations.

Individual income tax

In the Solomon Islands, individual income tax rates are progressive, with rates ranging from 11% to 40% based on income levels. Taxable income includes all earnings, and individuals can benefit from various deductions and allowances to reduce their taxable income.

Health insurance

The Solomon Islands’ public healthcare system is overseen by the Ministry of Health and Medical Services. Healthcare services at public facilities are often subsidized or provided at no direct cost to residents, although there may be fees for certain services or medications.

Private health insurance is available in the Solomon Islands, primarily through local and regional insurance companies. These policies can help cover the cost of private healthcare services and may include benefits such as hospitalization, outpatient care, dental care, and emergency evacuation.

hassle-free Solomon Islanders compensation & benefits

Compensation & Benefits

Solomon Islands compensation laws

In the Solomon Islands, compensation laws are designed to ensure fair pay for all workers. The minimum wage is SI$4.00 per hour. According to the Labor Act, overtime work is compensated at a higher rate, usually 1.5 times the regular hourly wage. This ensures that employees are fairly rewarded for any extra hours they put in.

13 month salary in Solomon Islands

The concept of a 13th month salary is not a common practice in the Solomon Islands. Instead, bonuses and additional compensation are often performance-based or given at the employer’s discretion.

Social security for Solomon Islanders nationals

Social security contributions in the Solomon Islands are essential for supporting various social benefits, including pensions and healthcare. Both employers and employees contribute to the National Provident Fund (NPF). Employers deduct a portion of the employee’s salary and add their contribution to it. This fund provides financial security for employees in cases of retirement, disability, or other situations where they might not be able to work. The contributions are regulated by the Solomon Islands National Provident Fund Act, ensuring that all eligible workers are covered and can benefit from this social safety net.

Solomon Islands Employer Of Record Peo

Navigation

Hire in Solomon Islands

What Is a Solomon Islands EOR?

What Are the Benefits of a Solomon Islands EOR?

Why Choose Horizons?

How Does a Solomon Islands EOR Work?

Labor Laws

Employment contract types

Working hours in Solomon Islands

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Solomon Islands handle local labor law compliance?

An Employer of Record in Solomon Islands takes care of all the details when it comes to complying with local labor laws. They handle everything from drafting legal contracts to processing payroll and managing taxes. This ensures that all employment practices are in line with the country’s regulations, reducing the risk of any legal issues. The EOR stays updated on any changes in the law, so you don’t have to worry about keeping up with the latest requirements. This way, your business can operate smoothly and legally.

What are the benefits of using an EOR for hiring in Solomon Islands?

Using an EOR for hiring in Solomon Islands offers many benefits. First, it simplifies the hiring process by taking care of all the administrative and legal tasks, so you can focus on finding the right talent. You can quickly hire local employees without needing to set up a local entity. Also, an EOR ensures compliance with local labor laws, reducing the risk of fines or legal issues. This means you can expand your business more easily and concentrate on growing your operations while the EOR handles the employment details.

Solomon Islands EOR & PEO

Start hiring in Solomon Islands

Simple, compliant hiring with Horizons EOR & PEO

Hire in Solomon Islands

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Time-to-hire

Contracts

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hire employees in Solomon Islands

What Is a Solomon Islands EOR?

Save Money And Time with A Solomon Islands EOR

What Are the Benefits of a Solomon Islands EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Solomon Islands EOR

How Does a Solomon Islands EOR Work?

stay compliant with Solomon Islands labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Solomon Islands

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Solomon Islands

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Solomon Islands

Annual leave in Solomon Islands

Termination & severance in Solomon Islands

Solomon Islands' compulsory social security contributions

Solomon Islands social security for foreigners

Individual income tax

Health insurance

hassle-free Solomon Islanders compensation & benefits

Compensation & Benefits

Solomon Islands compensation laws

13 month salary in Solomon Islands

Social security for Solomon Islanders nationals

Hire in Solomon Islands in 24h without your own local entity.

Frequently asked questions

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