Hire in Micronesia,
compliantly,
without the complexity.

Expanding to Micronesia

The Federated States of Micronesia (FSM) offers a strategic location in the Pacific region, featuring a fluent English-speaking workforce operating within a currency framework based on the US Dollar.

Using an EOR in FSM allows international companies to employ local specialists seamlessly, bypassing state-level corporate entity setup while maintaining full compliance with federal and state labor standards.

Employment Regulations in Micronesia

Standard working hours are set at 40 hours per week (8 hours per day). Probation periods typically run from 30 to 90 days. Employment contracts follow common law principles, requiring reasonable notice or pay in lieu for contract terminations without cause.

Taxation and Employee Benefits

Employers contribute 6% to the FSM Social Security System. Statutory benefits include paid annual leave (typically 10 to 13 days), official FSM national and state public holidays, and sick leave cover.

Micronesian Payroll Administration

Payroll is processed bi-weekly or monthly in USD. Employers deduct employee income taxes (Gross Revenue Tax / Earnings Tax) and Social Security fees, remitting funds quarterly/monthly to the FSM Social Security Administration and Tax Office.

Intellectual Property and Data Security

Intellectual property rights for software and work product created by employees in the line of duty vest directly in the employer under statutory and common law standards.