Tuvalu EOR & PEO

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Hire in Tuvalu

Have you ever wondered what it’s like to hire in one of the world’s smallest and most remote nations? Tuvalu, a tiny island country in the Pacific Ocean, is made up of nine islands and has a population of about 11,000 people. It became an independent nation in 1978 after being part of the British Empire. Despite its small size and population, Tuvalu has an interesting history and a unique way of life that is shaped by its geography and isolation.

Geographically, Tuvalu is made up of low-lying atolls and reef islands, making it vulnerable to climate change and rising sea levels. Because of this, it has a close-knit community where everyone knows each other, and traditional practices are blended with modern influences.

When it comes to hiring in Tuvalu, understanding the local lifestyle is very important. The economy is mainly based on fishing, remittances from overseas workers, and revenues from its internet domain “.tv.” Opportunities for business expansion are growing, especially in areas like tourism and digital services. However, understanding the local labor market and regulations can be very challenging. This is where partnering with an Employer of Record (EOR) can be very beneficial. An EOR handles all the legal and administrative tasks, making it easier for you to hire local talent and expand your business in Tuvalu without setting up a local entity.

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hire employees in Tuvalu

What Is a Tuvalu EOR?

A Tuvalu Employer of Record is a third-party company that handles the legal and administrative responsibilities of employing workers in Tuvalu on behalf of your business. This means they take care of everything from payroll and taxes to benefits and handle all of the local labor laws. Essentially, the EOR becomes the official employer for your staff in Tuvalu, while you maintain control over their daily tasks and work performance. This setup allows you to focus on growing your business without getting bogged down by difficult employment regulations.

The terms “Employer of Record” and “Professional Employer Organization” (PEO) are usually used interchangeably and refer to the same concept. Both EORs and PEOs 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 much easier to manage your workforce in Tuvalu.

Save Money And Time with A Tuvalu EOR

What Are the Benefits of a Tuvalu EOR?

Using a Tuvalu Employer of Record comes with a wide variety of benefits that make expanding your business into this island nation a whole lot simpler. One of the main advantages is that an EOR takes care of all the legal and administrative tasks related to employment. 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 for you, allowing you to focus on running your business and achieving your goals.

Another major benefit is the ease and speed of hiring local talent. Setting up a local entity can be time-consuming and complicated, especially in a small and remote country like Tuvalu. An EOR eliminates this hassle by acting as the legal employer, allowing you to onboard new employees easily. This flexibility allows you to scale your team up or down based on your business needs without dealing with the complexities of local bureaucracy.

An EOR also helps minimize any risks associated with employment. They stay up-to-date with any changes in labor laws and ensure that your business stays compliant, reducing the risk of fines and legal issues. This is especially important in a country where the regulatory environment may be unfamiliar to foreign businesses. Also, the EOR handles all employment contracts, making sure they are legally sound and tailored to meet the local standards.

One often overlooked benefit is the positive impact on employee satisfaction. An EOR manages employee benefits such as health insurance and retirement plans, ensuring that your team receives the perks they deserve. This can greatly improve morale and retention rates, helping you build a motivated and loyal workforce. Plus, the EOR provides 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 Tuvalu 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 Tuvalu 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 Tuvalu EOR

How Does a Tuvalu EOR Work?

Hire your employees: A Tuvalu Employer of Record makes hiring new employees easy. You find the right candidates, and the EOR takes care of all the legal paperwork. They handle everything needed to officially employ your chosen candidates in Tuvalu. This means you can quickly and easily bring new talent on board without having to set up a local entity. The EOR becomes the legal employer, while your employees work for you and follow your direction.
Manage employment contracts and onboarding: The EOR manages all aspects of employment contracts to ensure they comply with Tuvalu’s labor laws. They draft, review, and finalize contracts, making sure everything is clear and legally sound. Also, the EOR handles the onboarding process, ensuring new hires have all the necessary documents and understand their roles completely. This helps new employees start their jobs with confidence, making the transition as seamless as possible.
Process payroll and handle employment taxes: Handling payroll and taxes can be complicated, but a Tuvalu EOR takes this burden off your shoulders. They manage payroll, making sure your employees are paid correctly and on time. The EOR handles salary calculations, tax withholdings, and any other necessary deductions, ensuring compliance with local tax laws. This ensures that your payroll process is smooth and error-free, allowing you to focus on other important aspects of your business.
Administer benefits: An EOR also takes care of administering employee benefits, such as health insurance and retirement plans. They manage the enrollment process, handle contributions, and ensure that your employees receive their benefits. This helps you offer competitive benefits packages that attract and retain the best possible talent. The EOR also deals with any benefit-related questions or issues that arise, providing support to your employees and keeping them satisfied.
Take care of exit procedures: When an employee leaves your company, the EOR handles the entire exit process. This includes managing all necessary paperwork, ensuring compliance with Tuvalu’s 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.

stay compliant with Tuvalu labor laws

Labor Laws

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

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

Employment contract types

In Tuvalu, employment contracts can be either permanent or fixed-term. Permanent contracts are for ongoing roles with no set end date, providing job security and long-term benefits like 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 are often used for temporary or seasonal work. Both types of contracts must comply with Tuvalu’s labor laws, ensuring that terms and conditions are fair and transparent for both employers and employees.

Project-based

Fixed-term

Indefinite

Working hours in Tuvalu

The standard working hours in Tuvalu are typically 40 hours per week, usually spread over five days. Most businesses operate from Monday to Friday, with each workday lasting about eight hours. Employees are entitled to regular breaks, including a lunch break. Any work beyond the standard 40 hours is considered overtime, which must be compensated at a higher rate, generally 1.5 times the regular hourly wage. This helps ensure that employees are fairly compensated for the extra time they put in.

Overtime must be compensated in the following way:

Holiday Schedule in Tuvalu [2024]

In 2024, Tuvalu will observe several public holidays that are important for both cultural and national reasons. These include New Year’s Day (January 1), which marks the start of the new year; Commonwealth Day (March 11); Holy Saturday (March 30) and Easter Monday (April 1), which are significant Christian holidays; Independence Day (October 1), celebrating Tuvalu’s independence from the United Kingdom in 1978; and Christmas Day (December 25), which celebrates the birth of Jesus Christ. On these days, employees typically have the day off with pay. If they work on any public holiday, they must be compensated at a higher rate, often double their regular pay.

Date	Holiday name
1 Jan, 2024	New Year’s Day
11 Mar, 2024	Commonwealth Day
29 Mar, 2024	Good Friday
30 Mar, 2024	Holy Saturday
1 Apr, 2024	Easter Monday
13 May, 2024	Gospel Day
8 Jun, 2024	King’s Official Birthday
5 Aug, 2024	National Children’s Day
1 Oct, 2024	Tuvalu Day
11 Nov, 2024	Heir to the Throne’s Birthday
25 Dec, 2024	Christmas Day
26 Dec, 2024	Boxing Day

Paid time off

Employees in Tuvalu are usually entitled to paid time off, which includes vacation leave and public holidays. Full-time employees usually earn a minimum of 15 days of paid vacation per year. PTO policies should be clearly outlined in the employment contract, detailing how leave is accrued and what the process is for requesting time off.

Sick leave in Tuvalu

Sick leave in Tuvalu allows employees to take time off when they are ill without losing pay. Full-time employees are generally entitled to a minimum of 10 days of paid sick leave per year. To qualify for paid sick leave, employees may need to provide a medical certificate if they are absent for more than two consecutive days. Clear sick leave policies should be included in the employment contract, outlining the procedures for notification and documentation. This ensures that employees can recover without worrying about financial loss.

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 Tuvalu

Female employees are entitled to 12 weeks (3 months) of maternity leave. This leave can be taken as 6 weeks before the expected date of confinement (birth) and 6 weeks after the birth, but adjustments can be made based on the actual date of birth and medical advice.

The Employment Act does not provide a statutory entitlement to paternity leave.

Annual leave in Tuvalu

Annual leave provides employees with a break from work to relax and spend time with family. In Tuvalu, 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. Annual leave should be scheduled in advance and agreed upon by both the employer and employee, ensuring that business operations are not disrupted.

Termination & severance in Tuvalu

Termination of employment in Tuvalu 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.

Tuvalu's compulsory social security contributions

Social security contributions are managed through the Tuvalu National Provident Fund (TNPF). The TNPF is responsible for providing 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 Tuvalu National Provident Fund.

Tuvalu social security for foreigners

Foreign employees are required to make contributions to the TNPF just like local employees. This means both the foreign employee and their employer must contribute to the fund.

Individual income tax

Tuvalu uses a progressive tax system – rate ranges from 0% to 25%. Taxable income includes earnings from employment, business income, and other sources of income. It is calculated after deducting any allowable expenses or exemptions.

Health insurance

The Ministry of Health provides the majority of healthcare services in Tuvalu. Basic healthcare services at public facilities are generally provided at low or no direct cost to residents. This includes general medical care, maternal and child health services, and treatment for common illnesses.

There are some private healthcare providers in Tuvalu, especially in the capital city, Funafuti. Private facilities may offer more specialized services and shorter wait times compared to public services.

hassle-free Tuvaluan compensation & benefits

Compensation & Benefits

Tuvalu compensation laws

In Tuvalu, compensation laws are designed to ensure that employees are paid fairly and on time. There is no set minimum wage by the government for the private sector, and the set wage for workers in the public sector is between A$3,00-A$4,000. Payment of wages typically occurs on a bi-weekly or monthly basis. According to Tuvalu’s Employment Act, any overtime work must be compensated at a higher rate, usually 1.5 times the regular hourly wage.

13 month salary in Tuvalu

The concept of a 13th month salary, which is common in some countries, is not a standard practice in Tuvalu. However, some employers may offer performance-based bonuses or additional compensation at their discretion.

Social security for Tuvaluan nationals

In Tuvalu, social security contributions are crucial for providing various social benefits, including pensions and healthcare. Both employers and employees contribute to the National Provident Fund (NPF). The NPF is regulated by the Tuvalu National Provident Fund Act, which mandates that a portion of the employee’s salary be deducted and contributed to the fund. Employers also contribute an additional amount. These contributions help provide financial security for employees in cases of retirement, disability, or other situations where they might not be able to work.

Tuvalu Employer Of Record Peo

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Hire in Tuvalu

What Is a Tuvalu EOR?

What Are the Benefits of a Tuvalu EOR?

Why Choose Horizons?

How Does a Tuvalu EOR Work?

Labor Laws

Employment contract types

Working hours in Tuvalu

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

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

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 setting up a local entity, saving time and effort. Additionally, 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.

How does an EOR in Tuvalu handle compliance with local labor laws?

An Employer of Record in Tuvalu takes care of all the details to ensure your business complies with local labor laws. They handle everything from drafting legal employment contracts to processing payroll and managing taxes. The EOR stays updated on any changes in labor laws, ensuring your business remains compliant without you needing to worry about it. This allows you to focus on running your business while knowing all legal requirements are being met.

Tuvalu EOR & PEO

Start hiring in Tuvalu

Simple, compliant hiring with Horizons EOR & PEO

Hire in Tuvalu

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hire employees in Tuvalu

What Is a Tuvalu EOR?

Save Money And Time with A Tuvalu EOR

What Are the Benefits of a Tuvalu EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Tuvalu EOR

How Does a Tuvalu EOR Work?

stay compliant with Tuvalu 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 Tuvalu

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 Tuvalu

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 Tuvalu

Annual leave in Tuvalu

Termination & severance in Tuvalu

Tuvalu's compulsory social security contributions

Tuvalu social security for foreigners

Individual income tax

Health insurance

hassle-free Tuvaluan compensation & benefits

Compensation & Benefits

Tuvalu compensation laws

13 month salary in Tuvalu

Social security for Tuvaluan nationals

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

Frequently asked questions

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