Federated States of Micronesia

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Federated States of Micronesia. See a sample of popular sections below.

Termination of Employment

There is no statutory requirement for notice period in the private sector in the Federated States of Micronesia. Employers can include the required notice period in their employee handbooks or employment contracts. The Supreme Court has ruled that where an employer terminates an employee without proper notice the termination will be given effect at the end of the proper notice period and the employee is entitled to any compensation they would have received during that period. Employees can be terminated without notice only in case of justified reasons. 

In case of dismissal of a permanent employee in the public sector, a written notice setting forth the specific reasons for the dismissal must be given. A copy of the notice must be sent to the Personnel Officer.  

Work Permits

Foreign nationals who wish to work in the Federated States of Micronesia, whether in government or private sector, require a work permit. Applicants must submit their employment contracts and the permit is issued for the duration of the contract. They must also submit their identification details, educational qualifications, prior experience, family status, etc. 

Any employer who hires foreign employees must file an application with the Employment Service stating the place and nature of their business, the number of employees to be hired and their occupational qualifications, the wages to be paid such employees, the date on which such employees are required, the district or districts of work, and any other information the Employment Service may require or which the employer may deem appropriate. Employers must advertise the vacancies for citizens of Micronesia for at least 30 days before selecting foreign employees.

Paid Annual Leave

There is no statutory maternity leave for private sector employees in the Federated States of Micronesia. Public sector employees receive a paid maternity leave for 12 consecutive weeks per 12-month period. Maternity leave applies to all national employees, regardless of employment status, whether permanent or probationary status, and whether a public service or exempt employee. Paid maternity leave does not accumulate for any subsequent use if not used by an employee before the end of each calendar year. Maternity leave cannot be replaced by annual leave or sick leave. Employers can ask their employees to provide a doctor’s certificate indicating general condition during pregnancy and the expected delivery date.

Working Hours

There are no statutory limits on working hours in the Federated States of Micronesia for private sector. Working hours are agreed upon in the employment handbooks or contracts. In the public sector, standard working hours are eight hours a day or 40 hours a week.

Maternity Leave

There is no statutory maternity leave for private sector employees in the Federated States of Micronesia. Public sector employees receive a paid maternity leave for 12 consecutive weeks per 12-month period. Maternity leave applies to all national employees, regardless of employment status, whether permanent or probationary status, and whether a public service or exempt employee. Paid maternity leave does not accumulate for any subsequent use if not used by an employee before the end of each calendar year. Maternity leave cannot be replaced by annual leave or sick leave. Employers can ask their employees to provide a doctor’s certificate indicating general condition during pregnancy and the expected delivery date.

Minimum Wage

Minimum wage is set at the national as well as state level for public employees in the Federated States of Micronesia. The national hourly minimum wage is USD 2.65 and USD 2.00 in Pohnpei, USD 1.25 in Chuuk, USD 1.42 in Kosrae, and USD 1.60 in Yap. Only Pohnpei has a minimum wage worth USD 1.75 per hour for private employees. Minimum wage was last set in 2015.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Federated States of Micronesia.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Federated States of Micronesia.