Vanuatu EOR & PEO

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Hire in Vanuatu

Vanuatu is a small nation made up of an archipelago of islands roughly 1000 miles off the northeast coast of Australia. Home to native Melanesian people, these islands were previously ruled by the Spanish, French, and English and only achieved independence in 1980. Since that time, the economy of the small nation of 345,000 has grown tenfold to its current GDP size of $1.29 billion. This growth is predicted to continue at 3.0% in 2024 based on its main industries of agriculture, tourism, offshore financial services, and raising cattle. The 2023 unemployment rate was a modest 5.1%, just slightly higher than average. This means that there are Ni-Vanuatu, Vanuatu people, ready to work right now. If your company wants to hire them, working with an EOR may be your best option.

Facts & Stats

hire employees in Vanuatu

What Is a Vanuatu EOR?

An EOR is an employer of record. This kind of service provider may sometimes also be referred to as a PEO or professional employment organization, and these terms can be used interchangeably. An EOR works with other companies, allowing them to hire employees in Vanuatu without having to own business entities there. However, EORs do more than recruit and hire. Their clients can also outsource human resources (HR) functions to them. EORs can provide services that include contract management, payroll, benefits administration, leave scheduling, and more. In exchange, their client companies pay them regular fees for each worker they manage over the long term.

Save Money And Time with A Vanuatu EOR

What Are the Benefits of a Vanuatu EOR?

Any company that works with an EOR will instantly recognize the benefits they bring. Among the advantages that EORs provide for their clients are:

Not needing an entity: As a foreign-based company, you’d normally need to register a legal business entity in Vanuatu (corporation, limited liability company, etc.). When you work with an EOR, however, the EOR hires workers directly and becomes their legal employer. This saves you the difficulty of registering an entity and the time and money you’d otherwise have to spend on this challenging activity.
Language skills: English and French are the official languages in Vanuatu and are the primary languages of education. Most people speak Bislama, an English-and-Melanesian-based creole. Another 113 indigenous languages are spoken in the islands. These language skills enable global communication while also producing a valuable diversity of ideas for employers.
Fast recruitment and onboarding: If you did register an entity in Vanuatu and decided to recruit employees on your own, you’d normally find this a serious challenge. Without local networks or knowledge of how to effectively recruit Ni-Vanuatu, it might take you months to find the talent you need to fill your openings. An EOR, on the other hand, typically has a local talent pool to choose from and the ability to advertise for applicants effectively. This can let an EOR find candidates in days to just a few weeks, greatly enhancing the speed of recruiting your new employees.
Affordability: Vanuatu is a low-middle-income country with salaries that are well below international averages. Employers also pay just 4% on top of salaries for social security contributions. These factors make employing Vanuatu workers highly affordable.
Constant compliance: While the employees work directly for you, it’s the EOR that acts as their sole legal employer in Vanuatu. For this reason, it’s also the EOR’s responsibility to know and follow all tax and employment laws related to your workers. By monitoring their conditions and making sure taxes, social security payments, and salaries are paid correctly, the EOR ensures constant compliance so you don’t need to worry about legalities.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Vanuatu 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 Vanuatu 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 Vanuatu EOR

How Does a Vanuatu EOR Work?

If you decide to work with an EOR in Vanuatu, you’ll need to pay a fee to this service provider to manage your employees. Most EORs will provide the following services for you:

Hiring your employees: The first thing you’ll need to do is let the EOR know your staffing requirements. You’ll need to provide the job openings you have, their number, and the requirements you have for employees who can fill them. The EOR will take this information and use it to start recruiting appropriate Ni-Vanuatu workers. It will dip into its talent pool and local networks or advertise publicly to find applicants for hard-to-fill positions. Once it has vetted these applicants, it will present candidates to your company. If you accept them, the EOR will hire them and become their legal employer in Vanuatu.
Managing employment contracts and onboarding: The EOR will recommend the working conditions and compensation you should offer, and you’ll negotiate terms with the employees. Once the terms are settled, the EOR will write them up into contracts, which it will then sign with the employees. The EOR also takes on the responsibility of onboarding your workers. It will need to collect their personal and payment information, enter them into employee databases, and register them with the local tax and social security authorities. It may also provide them with an orientation to prepare them to work for your company.
Processing payroll and handling employment taxes: The EOR’s staff will need to have extensive knowledge of Vanuatu’s tax and employment laws to allow them to process payroll and taxes. You’ll need to provide the employees’ worked hours data for each pay period and the EOR will calculate from this their gross salaries, tax withholdings, and social security contributions. You’ll need to provide these funds. The EOR will pay the employees’ taxes as well as their and your social contributions. It will then disperse the leftover net salaries to the employees, providing them with pay stubs and you with all payroll records.
Administering benefits: You may opt to provide your employees with benefits such as private insurance or pensions to enhance their compensation packages. In this case, the EOR can manage the administration of these benefits by signing employees up for programs and paying regular contributions.
Taking care of exit procedures: At some point, you will need to terminate workers. This can be for individual reasons or, in the case of group terminations, because of economic reasons or even to wind down your operation. The EOR will provide notice as necessary and calculate and pay severance to workers as required by law.

stay compliant with Vanuatu labor laws

Labor Laws

Vanuatu enjoys a wide array of employment laws designed to protect the interests of both employers and employees. These laws are found in legal instruments such as the Vanuatu Constitution of 1980 (revised in 2013), the Employment Act of 2020, other Ministerial orders, and the International Labor Organization conventions that Vanuatu has ratified. It can be very difficult to follow these scattered laws, and this responsibility is best left to the EOR. Employers should, however, make themselves familiar with the following main points of law as these can let them know what they must provide for their Vanuatu workers.

Employment contract types

Contracts can be oral but must be in writing if the period of work is over six months. Contracts must include the names of the parties, the nature of employment, and the amount and the mode of payment of remuneration. Contracts can be permanent or fixed-term, though fixed-term contracts cannot last longer than four years.

Project-based

Fixed-term

Indefinite

Working hours in Vanuatu

Ni-Vanuatu cannot work regular hours of more than 44 hours or six days per week or more than eight hours in a day. These hours can be extended through overtime, which must be paid at a higher rate and is limited to 16 hours per week.

Overtime must be compensated in the following way:

Holiday Schedule in Vanuatu [2024]

Vanuatu has 14 paid public holidays each year. These are a mixture of national days and Christian religious observances. Workers cannot be required to work on public holidays or Sundays. If they volunteer, they must receive compensatory days off on other days.

Date	Holiday name
1 Jan, 2024	New Year’s Day
21 Feb, 2024	Father Walter Lini Day
5 Mar, 2024	Customary Chief’s Day
29 Mar, 2024	Good Friday
1 Apr, 2024	Easter Monday
1 May, 2024	Labor Day
9 May, 2024	Ascension Day
24 Jul, 2024	Children’s Day
30 Jul, 2024	Independence Day
15 Aug, 2024	Assumption Day
5 Oct, 2024	Constitution Day
29 Nov, 2024	Unity Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	Family Day

Paid time off

Workers who work more than six hours in a day are entitled to one hour for a meal and one 20-minute or two ten-minute tea breaks per day. These breaks are unpaid. Workers are also entitled to one 24-hour rest period per week.

Sick leave in Vanuatu

Any worker employed continuously for over three months is entitled to 21 days of fully paid sick leave per year. For absences longer than four days, a medical certificate must be provided to the employer.

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 Vanuatu

Expecting mothers are entitled to 12 weeks of maternity leave, six before and six after confinement, at 66% of their normal salary. There is no entitlement for paternity leave in Vanuatu.

Annual leave in Vanuatu

Annual leave is related to seniority. Employees who have worked one to six years for an employer receive 1.25 days for each month of work or 15 days of leave per year. For 7-19 years of service, workers get 1.75 working days per month of service (21 days annually). After 20 years, workers get 36 days per year, 48 days after 25 years, and 72 days after 30 years.

Termination & severance in Vanuatu

The employer must give notice of termination except for cases of gross misconduct. Employees working for less than three years must receive 14 days’ notice, while after three years, they must receive three months’ notice. When severance must be given, it’s paid at one month’s wages for each year of service provided.

Vanuatu's compulsory social security contributions

Vanuatu has a compulsory social security system managed by the Vanuatu National Provident Fund (VNPF). Benefits include Old-age pensions and withdrawal benefits.

Both the employees and employers contribute a percentage of the employee’s salary to the VNPF.

Vanuatu social security for foreigners

The social security system in Vanuatu is undergoing reform, and the specific rules for foreign worker contributions are not entirely clear yet.

Some foreign workers might be covered by private social security plans offered by their employers, particularly if they are employed by international companies.

Individual income tax

Vanuatu does not levy any personal income tax on residents or non-residents. This means you generally won’t pay taxes on your salary, investments, or other forms of income earned in Vanuatu.

To be considered a non-tax resident and benefit from the absence of income tax, you typically need to demonstrate that you spend less than 183 days per year in Vanuatu.

Health insurance

Vanuatu’s healthcare system faces some challenges, and health insurance isn’t as widespread as in many other developed countries.

Vanuatu has a public healthcare system, but resource limitations and long wait times are common. Public hospitals and clinics are generally used for emergencies or by those who cannot afford private healthcare.

Some larger companies in Vanuatu might offer health insurance as part of their employee benefits package.

hassle-free Ni-Vanuatu compensation & benefits

Compensation & Benefits

Vanuatu compensation laws

The minimum wage for Vanuatu workers has been set since 2023. Workers who work 40 hours/week must receive at least 51,960 VUV (Vanuatu vatus)/month (about 430 USD), and workers who work 44 hours/week must receive at least 57,165 VUV/month (about 475 USD).

Overtime must be paid at 125% of normal wages for the first four hours of the week. For subsequent hours, this rate increases to 150%.

13 month salary in Vanuatu

A 13th-month annual bonus is not mandatory in Vanuatu. However, some employers may offer this bonus to improve their employees’ compensation packages.

Social security for Ni-Vanuatu nationals

Employers in Vanuatu pay contributions equal to 4% of a worker’s salary for old age, invalidity, and survivor’s benefits. Employees are also deducted 4% of their salaries toward these same benefits for a total of 8%.

Vanuatu Employer Of Record Peo

Navigation

Hire in Vanuatu

What Is a Vanuatu EOR?

What Are the Benefits of a Vanuatu EOR?

Why Choose Horizons?

How Does a Vanuatu EOR Work?

Labor Laws

Employment contract types

Working hours in Vanuatu

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

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

The answer is that the EOR must have knowledgeable and experienced staff who know all about the tax and employment laws in Vanuatu. This staff prepares contracts to offer working conditions and compensation that are in line with local statutes. It also constantly monitors working conditions to ensure they’re being adhered to. Because it also handles payroll, the EOR ensures that all tax, social security, and salary payments are timely and correct.

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

The top benefit of working with a Vanuatu EOR is that it lets you hire local staff without having to own an entity in the country. EORs can also recruit and hire employees much more quickly and effectively than you could do on your own. EORs manage your employees’ long-term HR needs and ensure that everything is done legally so you don’t have to work about penalties or legal actions.

Vanuatu EOR & PEO

Start hiring in Vanuatu

Simple, compliant hiring with Horizons EOR & PEO

Hire in Vanuatu

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hire employees in Vanuatu

What Is a Vanuatu EOR?

Save Money And Time with A Vanuatu EOR

What Are the Benefits of a Vanuatu EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Vanuatu EOR

How Does a Vanuatu EOR Work?

stay compliant with Vanuatu 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 Vanuatu

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 Vanuatu

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 Vanuatu

Annual leave in Vanuatu

Termination & severance in Vanuatu

Vanuatu's compulsory social security contributions

Vanuatu social security for foreigners

Individual income tax

Health insurance

hassle-free Ni-Vanuatu compensation & benefits

Compensation & Benefits

Vanuatu compensation laws

13 month salary in Vanuatu

Social security for Ni-Vanuatu nationals

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

Frequently asked questions

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