Global EOR Services in Vanuatu
Find, Hire & Pay Employees in Vanuatu
Global Employer of Record (EOR) services in Vanuatu offer a seamless solution for companies aiming to hire employees in the region without setting up a local legal entity. By managing compliance, payroll, taxation, and employee benefits in accordance with Vanuatu regulations, Global EOR services enable businesses to focus on growth while navigating the complexities of local labor laws with ease.
Why Use Global EOR Services in Vanuatu ?
An EOR in Vanuatu enables foreign businesses to hire employees without needing to register a legal entity. The EOR becomes the legal employer, managing:
Employment contracts (in compliance with Vanuatu labor laws)
Payroll processing in VUV
Tax withholding and reporting
Vanuatu National Provident Fund (VNPF) contributions
Statutory leave and benefit administration
Compliance with health and safety regulations
Support for visas/work permits (for foreign hires)
Lawful termination procedures.
Vanuatu : A Comprehensive Overview
Vanuatu is an island nation in the South Pacific, comprising around 80 islands. Known for its tourism, agriculture, and offshore financial services, Vanuatu offers political stability and a business-friendly environment. The economy is driven by tourism, agriculture (copra, kava, cocoa, beef), and offshore services, with the government actively promoting foreign investment.
The country enjoys duty-free access to major markets under agreements like the Pacific Agreement on Closer Economic Relations (PACER Plus) and Economic Partnership Agreements with the EU.
Capital: Port Vila
Currency: Vanuatu Vatu (VUV)
Population: ~320,000
Official languages: Bislama, English, French
Main industries: Tourism, agriculture, fishing, offshore financial services
Main exports: Copra, kava, beef, cocoa, timber
Main trading partners: Australia, New Zealand, Japan, China, EU
Employment Laws and Policies in Vanuatu
Vanuatu’s employment relationships are mainly governed by:
The Employment Act [Cap 160] (as amended)
The Workmen’s Compensation Act [Cap 202]
Occupational Health and Safety laws
Vanuatu National Provident Fund (VNPF) Act
Employment Contracts
Employment contracts can be oral or written, but written contracts are strongly recommended.
Should include job description, salary, working hours, leave, notice period, and termination terms.
Fixed-term and indefinite contracts are allowed.
Working Hours
Standard working hours: 44 hours per week (typically 8 hours/day, 5.5 days/week).
Overtime:
Weekdays: 1.25x normal rate
Sundays/public holidays: 1.5x normal rate
Leave Entitlements
Annual leave: 21 consecutive days (after 12 months of service).
Sick leave: 21 days paid per year after 6 months of continuous service.
Maternity leave: 12 weeks (6 before and 6 after birth) with 50% pay (employer-paid).
Public holidays: Employees entitled to 10+ gazetted public holidays (paid).
Payroll, Tax & Contributions
Personal income tax: 🚫 Vanuatu has no personal income tax.
Employer contributions:
Vanuatu National Provident Fund (VNPF): 4% of gross salary (employer), 4% (employee).
Workmen’s compensation premium (rate varies by industry and risk).
Payroll must be processed in Vatu, with timely payment of VNPF contributions.
Health & Safety
Employers must ensure a safe working environment under occupational health and safety laws.
Employers are liable for compensation for workplace injuries (Workmen’s Compensation Act).
Health and safety committees recommended for larger workplaces.
Termination & Severance
Notice period (or pay in lieu):
1 day (for workers paid daily)
14 days (for weekly workers)
1 month (for monthly salaried workers)
Severance: Mandatory — 1 month’s pay for each year of continuous service if terminated (except for serious misconduct).
Redundancy: Additional compensation may apply.
Non-Discrimination & Equality
The law prohibits discrimination based on race, color, sex, religion, political opinion, national extraction, or social origin.
Equal pay for equal work is a legal standard.
Opening a Legal Entity in Vanuatu
Foreign companies can establish entities via:
International Company (IC): Often used for offshore activities; cannot trade locally.
Local Limited Company: For domestic trading and hiring.
Branch registration: Alternative if operating as an extension of a foreign parent.
Process overview:
Reserve company name with Vanuatu Financial Services Commission (VFSC)
Register company, submit Memorandum & Articles of Association
Appoint local registered agent (mandatory for ICs)
Obtain business license (if operating locally)
Register with VNPF
Set up local payroll and accounting
Timeline: Typically 2-4 weeks, depending on entity type.
Popular Global EOR Providers Supporting Vanuatu
(They often partner with in-country firms for local compliance.)
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