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Labor Laws in Micronesia

  • Annual Leave: 12 weeks
  • Public Holidays: 8
  • Workweek: 40 hours per week.

Income Tax in Micronesia

Income Tax in Micronesia is progressive and ranges from 6% to 10%.

Value Added Tax (VAT) Micronesia

    The standard VAT Rate (Sales tax) is 5%

Social Security in Micronesia

  • In the Federated States of Micronesia (FSM), social security contributions are structured as follows:
    • Employer Contribution:Employers are required to contribute 7.5%.
    • Employee Contribution:Employees also contribute 7.5% of their earnings to the social security system.

Work Visas Micronesia

The visas available to legally work in Micronesia include:

Private Employer Workers Permit:

  • Issued for employment with private companies.
  • Requires compliance with national laws regarding private employment.
  • Holders can apply for permits for immediate family dependents.

Government Worker Permit:

  • Granted to individuals employed by the FSM national, state, or municipal government, or foreign government employees.
  • Requires an official employment contract and is valid for the duration of the contract.

Non-Government Worker Permit:

  • Issued for individuals entering FSM for non-government employment.
  • The employer must apply for this permit and provide proof of compliance with employment laws.

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