Employment in Tuvalu is governed by the Labour and Employment Relations Act 2017, in force since 5 October 2018, which applies to all employers and employees. Public servants keep any more favourable terms under their own rules. Here is what employers need to know about leave, pay, tax, the provident fund and ending employment.
The Act’s leave rules apply to all employees except casual employees, and to part-time employees on a pro-rata basis. All statutory leave is paid by the employer at the employee’s normal wage.
Paid working days for each completed year of continuous service, available pro rata after 6 months. Public holidays within leave are not counted.
Paid days a year for each completed year of continuous service, when sickness or injury prevents work.
Taken around the birth, at 100% of pay, on production of a medical certificate confirming the expected date of delivery.
At 100% of pay for the husband of a woman who gives birth or adopts, taken within 4 months of the birth or adoption.
Set up each Tuvaluan leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for part-time staff. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Minimum wages are set by minimum wage orders made on the recommendation of a Minimum Wage Board under the Act. Overtime rates for work beyond ordinary hours, at weekends and on public holidays are prescribed by regulations, and do not apply to annual salaries that already compensate for extra hours.
And 8 hours a day. Employers may only ask for additional hours that are reasonable, taking account of health and safety and family responsibilities.
Consecutive hours of rest each week, plus a daily rest of at least 12 consecutive hours, unless a shorter rest is reasonable.
Unpaid, after more than 6 consecutive hours, plus one paid 20-minute tea break or two paid 10-minute breaks.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so wage statements and employment records reflect what was actually worked. Time & attendance →
Employers withhold income tax from employees’ pay. For each pay period, the wage less the employee’s provident fund contribution is annualised, taxed at the rates below and divided back by the number of pay periods.
| Annual taxable income | Rate |
|---|---|
| AUD 0 – AUD 10,000 | 0% |
| AUD 10,001 – AUD 14,000 | 15% |
| Over AUD 14,000 | 30% |
Contributions to the Tuvalu National Provident Fund (TNPF) are compulsory for employed persons. The employer is liable for both shares, recovers the employee’s share by deduction from pay, and pays the total by the 15th of the following month.
Of gross earnings. Employers may voluntarily contribute up to 3% more.
Of gross earnings, deducted from pay. Employees can make additional voluntary contributions.
On contributions still unpaid from the 16th day of the following month.
Rates are those in the Provident Fund (Contributions) Regulations, 2022 revised edition. Employed seafarers have their own contribution schedule. Confirm current rates with the TNPF.
Build Tuvaluan pay the way you already structure it, with your own salary components, deductions and formula columns, such as TNPF contribution columns. Want to know how well IceHrm handles payroll calculations for Tuvalu? Contact us or see Payroll →
Contracts are presumed to be open-ended unless they are for a fixed period, a fixed task or casual work. An employer may only end an open-ended contract, or a fixed-term contract before it expires, for a lawful reason, and must prove that reason if the termination is disputed.
| Situation | Minimum notice |
|---|---|
| Termination by either party, unless otherwise agreed in writing | 1 week |
| Redundancy | 4 weeks |
| Serious misconduct | None |
Dismissal is unlawful if it is because of a protected attribute, temporary illness or injury, trade union membership or activity, a complaint against the employer, or absence on maternity or paternity leave. If a redundant employee was brought from another place to take the job, the employer must pay to repatriate the employee and their spouse and children.
All wages and benefits due, including accrued untaken annual leave, must be paid within 14 days of termination.
Public holidays are set by the Public Holidays Act. A holiday that falls on a weekend moves to the following Monday unless the Minister orders otherwise, and the Minister can appoint special holidays by notice.
If 2 October or 26 December falls on a Sunday, the following Monday and Tuesday are both holidays; if either falls on a Monday, the Tuesday is a holiday.
Leave groups give each office its own holiday calendar, so you can set each year’s observed dates and add any special holidays the Minister appoints. Holiday calendars →
A contract of service for more than 3 months must be in writing, contain the particulars listed in the Act, be signed by both parties and be attested by the Secretary responsible for labour. If it is not, the contract is treated as open-ended. Before signing, the employer must tell the employee they can take independent advice.
Send contracts for e-signing, keep the attested copy on the employee’s record with their leave and pay history, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Tuvalu, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Tuvalu? Talk to us.
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