Employment in Vanuatu is governed by the Employment Act [Cap. 160], administered by the Department of Labour, with retirement savings through the Vanuatu National Provident Fund (VNPF). Here is what employers need to know about leave, pay, payroll costs and ending employment.
The Employment Act sets minimum paid leave. Annual leave increases with length of service with the same employer.
1.25 working days per month in years 1 to 6, rising to 1.75 days per month (21 days a year) from year 7, with further increases after 20, 25 and 30 years.
Working days a year on full pay after 3 months' service. A medical certificate is needed after 2 days in Port Vila or Luganville, or 4 days elsewhere.
6 weeks before and 6 weeks after the birth, paid by the employer at 66% of normal pay. The employee returns to the same or an equivalent job.
Annual leave is paid at the employee's average pay over the previous 12 months and is taken in one block, or in two if both sides agree. The employer fixes the dates, taking the employee's wishes into account where possible.
A mother nursing her child is entitled to two 1-hour breaks a day, counted as paid working time, until the child is 2 years old. A woman on maternity leave, or ill as a result of pregnancy or childbirth, cannot be given notice of dismissal.
Set up each Vanuatu leave type in IceHrm with its own accrual, carry forward and approval rules, including service-based annual leave rates. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
A national minimum wage is set by order under the Minimum Wages Act and reviewed from time to time. Check the current order with the Department of Labour before setting pay.
No more than 8 hours a day or 6 days a week, excluding meal and tea breaks, with a weekly rest of 24 hours, normally on Sunday.
For the first 4 overtime hours in a week, then 1.5×. Night overtime (8 pm to 4 am) is paid at 1.75×.
Work on Sundays and public holidays is voluntary in most sectors, and is paid at least time and a half.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so tiered and night overtime rates reflect what was actually worked. Time & attendance →
Vanuatu does not levy personal income tax, so employers have no income tax to withhold from wages. The main payroll deduction is the employee's VNPF contribution.
VNPF membership is compulsory for employees aged 14 to 55 earning VT 3,000 a month or more, including expatriates unless VNPF has approved an exemption.
Of monthly gross remuneration. Severance pay, gratuities and allowances or reimbursements are excluded.
Deducted from pay by the employer and paid to VNPF with the employer's share.
Employers must register with VNPF within 7 days of starting business and register each employee within 14 days of hiring.
Employers must provide first aid and, depending on the undertaking, basic medical aid for employees, and should budget for the severance allowance that builds up with each year of service.
Build Vanuatu pay the way you already structure it, with your own salary components, deductions and formula columns, such as VNPF contribution columns. Want to know how well IceHrm handles payroll calculations for Vanuatu? Contact us or see Payroll →
A permanent contract ends when either party gives notice, and a fixed-term contract at the end of its term. An employer can dismiss without notice for serious misconduct; union membership or activity is never misconduct.
| Situation | Notice |
|---|---|
| 3 years' continuous service or more | 3 months |
| Less than 3 years, paid at intervals of 14 days or more | 14 days before the end of the month |
| Less than 3 years, paid more often than every 14 days | At least one pay interval |
After at least 12 months' continuous service, severance is due when the employer ends the employment, on retirement at 60 or over, when an employee with 6 or more years' service resigns in good faith, or when the employee is medically certified unfit to continue working.
| Service | Severance allowance |
|---|---|
| Each full 12 months | 1 month's pay |
| Each extra month | One twelfth of 1 month's pay |
Final pay, including pay in lieu of any untaken annual leave, is due as soon as employment ends.
Vanuatu has 14 national public holidays, and each of the six provinces has its own provincial day. Employees can't be required to work on a public holiday except in essential sectors such as transport, utilities, hospitality and health care, and those who do get equivalent time off.
Provincial days: Shefa Day (18 June), Penama Day (16 September), Sanma Day (24 September), Torba Day (2 October), Tafea Day (8 October) and Malampa Day (10 October) apply only in their province.
Leave groups give each office its own holiday calendar, so staff in Port Vila get Shefa Day and staff in Luganville get Sanma Day automatically. Holiday calendars →
An employment contract can be oral or written. It must be in writing if it is for a fixed term of more than 6 months, or requires the employee to live away from home.
Every open-ended contract has a 3-month probation period, during which either side can end the contract without notice. It can't be extended, and the employee becomes permanent when it ends. No contract may run for more than 4 years.
Send contracts for e-signing, store VNPF and work permit documents on the employee's record, 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 Vanuatu, 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 Vanuatu? Talk to us.
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