When you expand your business abroad, understanding Timor-Leste compensation laws can help you manage compliance and hiring requirements more smoothly and efficiently. As your trusted Employer of Record, Globalization Partners can help...
Read MoreWhen you expand your business abroad, understanding Timor-Leste compensation laws can help you manage compliance and hiring requirements more smoothly and efficiently. As your trusted Employer of Record, Globalization Partners can help you understand the legal expectations and requirements. Consider some key points of Timor-Leste benefits management and ensure you have the best resources to pursue business endeavors in the area.
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When you expand your business abroad, understanding Timor-Leste compensation laws can help you manage compliance and hiring requirements more smoothly and efficiently. As your trusted Employer of Record, Globalization Partners can help you understand the legal expectations and requirements. Consider some key points of Timor-Leste benefits management and ensure you have the best resources to pursue business endeavors in the area.
The current minimum wage is set at $115 per month, but market standards vary based on position, industry, and location.
Timor-Leste compensation laws stipulate that employees must not work over 44 hours a week or eight hours a day. If they do work overtime, they are entitled to additional compensation. After five hours of work, an employee is entitled to a one-hour break. Remuneration may be fixed or variable, and employers must pay it on a workday at the employee’s workplace. Employers are expected to meet their agreed-upon due dates for wage payments each month.
Employees are entitled to one annual bonus with an amount equivalent to one month’s pay on or before December 20.
All workers are entitled to have equal treatment, remuneration, employment opportunities, and working conditions, as outlined in the Equality Principle article of the Labour Code. Gender discrimination and harassment are prohibited in the workplace.
Timor-Leste compensation should include several guaranteed benefits in adherence to labor laws. There are several stipulations for paid leave, including justified absence, sudden illness or accident, and maternity and paternity leave.
Sick leave is permitted for up to 12 days, with the first six being full pay and the last six being half pay. Justified absence for illness requires certification by a physician. Twelve days of paid vacation leave are also provided according to the legal codes. Three days of justified absence for marriage, bereavement, or religious events are also available.
Female employees are entitled to 12 weeks of maternity leave, plus additional prenatal leave if they’re required to refrain from regular work by doctor’s orders. Male employees receive five days of paternity leave after the birth of a child. If they lose their partner during or within two weeks of childbirth, they are entitled to 12 weeks’ leave.
Employers are also required to submit monthly remuneration statements and pay monthly contributions for Social Security to Timor-Leste’s Revenue Service. At the end of each tax year, they must provide documentation of all income withheld and payments made.
As an employer, you are responsible for documenting income tax deductions from employees’ paychecks. You must also ensure that employees receive stipulated breaks, bonuses, on-time remunerations, and justified leaves of absence.
Your company is responsible for providing the benefits stipulated by law, but you can also offer additional services. An attractive benefits package that provides advantages for employees can help you more successfully recruit and hire the right candidates.
Some of the options for extra benefits you could offer include:
When you work with Globalization Partners, we’ll handle benefits packages for you. We’ll use our global expertise to prepare desirable offerings that meet market standards and legal requirements while attracting local talent.
The primary legal code for employers in Timor-Leste is the Labour Code of 2012. This law outlines employer and employee legal obligations and will detail any limitations for benefits and compensation.
When you work with us, you’ll have access to extensive resources to ensure compliance and effective benefits management for your business endeavors in Timor-Leste. Contact us today to learn more about our Employer of Record services.
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