Your employees will provide the work your international business needs to succeed, and they deserve the correct compensation and benefits for their efforts. When you expand abroad, you’ll have to consider a new set of laws that may differ from the regulations you know at home. Globalization Partners can provide the guidance you need for compliant compensation and benefits practices in Tuvalu.
Tuvalu Compensation Laws
The Minister of Labor can fix the minimum wage of a particular occupation or sector at any time. Before making these declarations, the Minister will consult with representatives of the employer and workers to determine fair wages for the working conditions. The minimum wage in the public sector is AUD 5,266, but wages vary for positions within the private sector.
Employers must provide wages in legal tender on a biweekly or monthly basis. Workers may receive food or housing as part of their compensation, but these provisions must be in addition to wages in legal tender. Employers should note food and housing provisions with a monetary amount on employees’ pay stubs.
Employers must provide a set of benefits to their workforce alongside compensation. In Tuvalu, guaranteed benefits for employees include public holidays, health care, and maternity leave.
There are 10 recognized public holidays in the country, and no employees must work on these days.
If an employee should become sick or injured under an employer’s contract, the employer must cover any medical expenses associated with recovery. Women are entitled to 12 weeks of maternity leave with six weeks before confinement and six weeks after.
As an employer, you are liable for the provisions you offer your workforce. If the Minister of Labor finds you aren’t meeting the required minimums, you may face legal repercussions. Make sure to include the relevant provisions in your employment contracts.
Tuvalu Benefits Management
While it’s your legal responsibility to provide the minimum benefits described in the labor laws, you can also offer additional support as you see fit. Adding extra benefits to your employment contracts can boost your workplace morale and make your vacancies more competitive in the job market. Other benefits may include:
- Holiday bonuses
- Meal vouchers
- Paid vacation days
- Overtime pay
As you design a benefits plan, you should consider what your employees need from you and what you can afford to provide with company resources. Balancing these two factors can be a challenge.
Benefits outsourcing with Globalization Partners simplifies the process. With our tiered employee packages, your provisions can scale with your company. Every tier includes the required minimums. As you move up the levels, you provide more for your workforce. Our system keeps your business practices compliant and ensures you don’t overextend your company resources. Our legal team designs each tier with country-specific labor laws in mind.
Any restrictions on compensation and benefits can be found in the Employment Act, which was last revised in 2008. Compensation laws and restrictions can vary depending on the Labor Commissioner and the discussions held with employee representatives in particular industries. Keep an eye on these regulations, as they are subject to change.
Turn to Globalization Partners for Compensation and Benefits Outsourcing in Tuvalu
Our Employer of Record model places your employees on our payroll, making us responsible for distributing paychecks to your workforce. Our HR and legal professionals ensure your workers receive fair wages within the country’s employment laws. You can stay compliant while balancing company resources with employee needs. Let us focus on these details so you can turn your attention toward the big picture — growing your business. Get in touch with us today to learn more.