Hiring a team of employees anywhere requires an understanding of a country’s compensation and benefits laws. All nations have minimum requirements, and as an employer, it’s your responsibility to recognize these. When you expand internationally, it can be challenging to navigate extensive employment laws to identify these regulations.
At Globalization Partners, we provide compensation and benefits outsourcing to Vanuatu to simplify the process.
Vanuatu Compensation Laws
The country’s minimum wage is VT 220 per hour, and the Offical Gazette recently published this change in 2019. Employees must receive their payment within eight days of the end of the pay period, and they cannot be paid at an interval greater than 15 days.
If an employee receives their paycheck in cash, they must obtain it from their employer on a working day or near the place of employment. Employers must document payments with a signature or thumbprint from the worker receiving the paycheck.
Labor laws always outline guaranteed benefits for employees, and these are the minimum requirements every employer must provide. In Vanuatu, employers must provide benefits like annual and sick leave, public holidays, maternity leave, lunch breaks, and tea time.
Employees receive one day of annual leave for every month worked, which increases to two days at 20 years of service. At 25 years, employees earn four days per month, and at 30 years, they earn six days. Public holidays are unpaid when employees don’t work, but they must receive 150 percent of their standard rate if they do work.
All employees earn 21 days of sick leave each year, and women are entitled to 12 weeks of maternity leave. Women with infants also earn nursing time on the job, two times a shift for 30 minutes each time. Employers must count these nursing periods as working hours and pay them at their standard rate.
Workers are entitled to one-hour breaks for lunch on any day they work six consecutive hours or more. They must also have one 20-minute tea break or two 10-minute tea breaks.
Vanuatu Benefits Management
While it’s vital to meet the required benefits to keep your employment legal in Vanuatu, you should consider providing more than the lawful minimums. Offering more perks can encourage higher quality work from your employees, and it makes your company’s positions more appealing than others on the market. You can make your workplace more competitive by providing extra benefits, like:
- Meal vouchers or rations.
- Transportation stipends.
When you expand your company beyond your country’s borders, it’s helpful to understand your new country’s requirements and cultural expectations to make ideal benefits packages. You also need to consider what you can manage to provide with your company’s resources.
Globalization Partners takes the guesswork out of benefits by creating packages for you. Every option meets the country’s required minimums while offering additional perks. With this system, you can scale your packages with your business. As your company grows and you can afford to provide more to your employees, you can choose a larger package.
As a nation made up of several small islands, many employees have to travel from their island to another one for work. Restrictions and requirements for benefits may change depending on an employee’s circumstances and whether they bring their family with them.
The country’s employment act outlines any restrictions regarding compensation and benefits.
Count on Globalization Partners for Compensation Outsourcing
Globalization Partners ensures you meet legal minimums without overextending your resources. We’ll navigate the legal documents while you focus on growing your company abroad. Want to learn more about our outsourcing services? Reach out to our team today.