Marshall Islands EOR & PEO

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Hire in Marshall Islands

Consisting of over 1,000 islands across 29 atolls, the Marshall Islands in the Central Pacific are one of the world’s most unique countries. The nation has a population of just over 40,000 and an economy built largely on public sector work in industries like agriculture and fisheries. With Marshallese and English as official languages, the labor force is adaptable to global opportunities, and many of its young workers have been known to relocate for employment in the USA and other English-speaking territories. Workers keen to embrace foreign opportunities without leaving their home, combined with monthly wages averaging between $800 and $1,500, make the Marshall Islands an attractive prospect for global businesses.

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What Is a Marshall Islands EOR?

A Marshall Islands Employer of Record (EOR) is an organization that assists global businesses in recruiting and managing workers within the Pacific island nation. It assumes the role of a local entity and employer on behalf of foreign clients, thus saving them the challenges of establishing an independent local entity, gaining knowledge of the Marshall Island labor market and the laws that regulate it, and managing workers remotely. While it is possible to hire a labor force in the Marshall Islands without an EOR, it is a significantly longer, more costly, and high-risk path to follow.

Often discussed interchangeably with an EOR is a Professional Employer Organization (PEO). This is a similar organization that enables global clients to outsource human resource management services within the Marshall Islands. Crucially, however, a PEO does not assume the role of a legal entity, meaning any business choosing a PEO over an EOR is still obliged to establish a local entity outside of its arrangements with the PEO.

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What Are the Benefits of a Marshall Islands EOR?

Working with a Marshall Islands EOR is one of the most efficient ways to gain access to the talent pool within the country. As an expert in both the region and employee management, an EOR can negotiate the challenges of establishing a labor force in the Marshall Islands with greater ease and a higher chance of success than an inexperienced foreign business is likely to achieve independently.

Among the many benefits of a Marshall Islands EOR are:

Legal entity: Any business seeking to operate in the Marshall Islands is obliged to establish a local entity within the territory. This comes with many challenges, including high costs and the potential for lengthy delays. When working with an EOR to hire a labor force, the EOR becomes that local entity, streamlining the process and assuming all legal liability.
Cultural fluency: As a remote destination, it can be difficult for foreign businesses to fully understand the expectations and priorities of Marshallese people or to become fluent in the local language. While these barriers can be overcome in time, they can increase the challenge of building working relationships. As a local expert, an EOR can help break down these barriers quickly and create the most productive possible relationships.
End-to-end service: An EOR is more than a recruitment agency. It is a complete service handling every aspect of managing a Marshall Islands labor force from hiring and contracting to payroll and administration before finally handling termination protocols and any necessary dispute resolution. Working with an EOR in the Marshall Islands allows a global business to completely outsource every part of its human resource needs in the region.

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Why Choose Horizons?

Horizons stands out as a Marshall 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 Marshall 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 Marshall Islands EOR

How Does a Marshall Islands EOR Work?

An EOR in the Marshall Islands works by becoming an intermediary between local talent and global businesses. After being tasked by a foreign company to provide workers for a prescribed set of roles, an EOR finds Marshallese people to fill those positions. The EOR hires the workers, becoming their legal employer and accepting all the responsibilities that go with it, before assigning them to work with their foreign client.

Services an EOR will perform include:

Hire your employees: The first task any EOR undertakes for its clients is to hire workers for them. It does this either by advertising the available roles and managing assessments to find the best applicants, or by contacting known workers already registered to its roster of talent. An EOR will also use its knowledge of the Marshall Islands labor market to ensure it is offering the right compensation package to attract the workers it needs.
Manage employment contracts and onboarding: Once the successful applicants have been offered terms and agreed to begin their employment, the EOR will manage all onboarding processes. This includes drafting contracts and having them signed, plus any other protocols either mandated by Marshall Island labor law or specified by the client business.
Process payroll and handle employment taxes: After contracts are signed, the workers are officially employed by the EOR. This means it is responsible for fulfilling all payroll and tax requirements. While the funding will ultimately come from the foreign client for whom the worker performs their duties, the administration of each employee’s compensation will be handled directly by the EOR.
Administer benefits: Salary and taxes are just part of an employer’s responsibility to their employees. During the course of every working relationship, the Marshall Islands EOR will also ensure all benefits are administered. This includes public holidays, paid leave, bonuses, allowances, and more.
Take care of exit procedures: The final duty of an EOR in the employment cycle is the completion of all exit procedures. Whether a worker’s employment ends due to their fault, the needs of the business, or by mutual consent, certain protocols will be required by both the Marshall Island authorities and the client business. It is the EOR’s responsibility to carry these out in full.

stay compliant with Marshall Islands labor laws

Labor Laws

One of the key responsibilities of any employer is ensuring its practices are fully compliant with labor laws. An EOR is no different and must have a thorough knowledge of all Marshall Islands laws and regulations before hiring within the territory.

Employment contract types

Unlike most nations, the Marshall Islands do not have a legal framework for permanent contracts of employment. However, it does allow for two specific contract types which should both contain terms outlining details of the parties, the job, the compensation, the benefits, intellectual property rights, dispute resolution, and termination processes.

Project-based

Fixed-term

Indefinite

Working hours in Marshall Islands

Regulations regarding working hours in the Marshall Islands are highly dependent on the industry and nature of each position. There is no universally mandated working week, maximum hours, or overtime framework. However, certain industries do have strict limits and requirements, particularly those in the maritime industries. In the case of employment by foreign businesses, it is important that all working conditions are fully addressed in the contract at the time of hire.

Overtime must be compensated in the following way:

Holiday Schedule in Marshall Islands [2024]

China has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
1 Mar, 2024	Remembrance Day
29 Mar, 2024	Good Friday
1 May, 2024	Constitution Day
5 Jul, 2024	Fishermen’s Day
6 Sep, 2024	Labor Day
27 Sep, 2024	Manit Day
17 Nov, 2024	President’s Day
18 Nov, 2024	Day off for President’s Day
6 Dec, 2024	Gospel Day
25 Dec, 2024	Christmas Day

Paid time off

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:

Sick leave in Marshall Islands

Sick leave in the Marshall Islands also accrues in line with hours worked, and paid time off is expected to be granted for any illness or injury that prevents a worker from performing their duties.

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 Marshall Islands

Maternity leave in the Marshall Islands is set at a minimum of 12 weeks. There is a further provision of 20 working days for workers who have not given birth but have parental responsibility for infants or adopted children. Marshall Islands workers are also entitled to one day each year of paid family or community service leave. Any other paid time off must be negotiated at the time of hire and included in the employment contract.

Annual leave in Marshall Islands

Employees in the Marshall Islands accrue annual leave based on the pattern of their working week. Completion of each five-day week entitles a worker to eight hours of annual leave, while a six-day week is worth 12 hours. The maximum annual leave any worker can accrue in a year is 26 days.

Termination & severance in Marshall Islands

Labor law in the Marshall Islands does not contain any framework for minimum notice periods or severance pay entitlements for Marshallese workers. The Marshall Islands Maritime Act (MG 7-45-1), however, states all seafarers should be given at least two weeks’ notice before termination of their employment, something which can be considered when agreeing on contractual terms for any position.

Marshall Islands' compulsory social security contributions

Social security contribution in the Marshall Islands is 8% of gross covered earnings for both employees and employers. This contribution supports retirement benefits, disability benefits, and survivor benefits.

Marshall Islands social security for foreigners

Foreign employees working in the Marshall Islands are typically required to contribute to the social security system if they are employed by a local company or government entity. This ensures they are covered under the same social security provisions as local employees.

Individual income tax

The income tax system is relatively straightforward compared to some other countries. The Marshall Islands uses a flat income tax rate system of 8% on all taxable income for individuals.

Health insurance

The Marshall Islands has a public healthcare system managed by the Ministry of Health. There is no universal public health insurance scheme in the Marshall Islands. Instead, residents typically rely on the public health system or private insurance.

Some residents and expatriates may opt for private health insurance to cover additional medical expenses, including access to private clinics and hospitals or international medical care.

hassle-free Marshallese compensation & benefits

Compensation & Benefits

Marshall Islands compensation laws

After 18 years, the minimum wage in the Marshall Islands was increased from $2 per hour to $3 per hour in April 2024. There are also plans to continue increasing this to reach $5.25 per hour over the coming years.

13 month salary in Marshall Islands

There is no law obliging employers to pay a 13th-month salary bonus in the Marshall Islands. Any bonuses or allowances in addition to salary and social security payments must be negotiated directly between employee and employer.

Social security for Marshallese nationals

Both employers and employees are required to make contributions to the Marshall Islands Social Security Administration (MISSA). Both parties should pay 8% of the employee’s gross salary for all earnings up to a cut-off of $10,000 per quarter.

Marshall Islands Employer Of Record Peo

Navigation

Hire in Marshall Islands

What Is a Marshall Islands EOR?

What Are the Benefits of a Marshall Islands EOR?

Why Choose Horizons?

How Does a Marshall Islands EOR Work?

Labor Laws

Employment contract types

Working hours in Marshall Islands

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in the Marshall Islands handle local tax compliance?

As a specialist service, an EOR should be fully aware of all tax obligations in the territories and sectors it operates. Any EOR working in the Marshall Islands will maintain an up-to-date knowledge of what must be paid, withheld, and contributed for each worker in order to remain compliant at all times.

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

Working with an EOR to establish a labor force in the Marshall Islands comes with a huge number of advantages. Some of the key benefits include the speed of hiring, outsourcing of all human resources management, and removing the burden of liability for compliance with local labor laws. It also removes the need to establish a local entity within the Marshall Islands, a process that can be costly, complex, and expose the business to significant risk.

Marshall Islands EOR & PEO

Start hiring in Marshall Islands

Simple, compliant hiring with Horizons EOR & PEO

Hire in Marshall Islands

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What Is a Marshall Islands EOR?

Save Money And Time with A Marshall Islands EOR

What Are the Benefits of a Marshall Islands EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Marshall Islands EOR

How Does a Marshall Islands EOR Work?

stay compliant with Marshall 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 Marshall 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 Marshall 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 Marshall Islands

Annual leave in Marshall Islands

Termination & severance in Marshall Islands

Marshall Islands' compulsory social security contributions

Marshall Islands social security for foreigners

Individual income tax

Health insurance

hassle-free Marshallese compensation & benefits

Compensation & Benefits

Marshall Islands compensation laws

13 month salary in Marshall Islands

Social security for Marshallese nationals

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

Frequently asked questions

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