Employer Of Record Micronesia | INS Global

Employer Of Record Micronesia

Expanding to Micronesia? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Are you embarking on a project or expansion in Micronesia, but you’re unsure about your responsibilities as an employer? INS Global‘s Employer of Record (EOR) in Micronesia offers a seamless approach to recruiting and managing employees without the need for a local entity. Navigate the complexities of a globally dispersed workforce and swiftly enter new markets with the guidance of adept HR recruitment and payroll professionals. 

Employer Of Record Micronesia - Summary

The Advantages of Using an EOR or Professional Employer Organization in Micronesia

Legal Compliance Assurance

Opt for an Employer of Record (EOR) service well-acquainted with Micronesia’s regulatory landscape to ensure effective recruitment and supervision of an international workforce. This proactive approach safeguards against potential fines by providing support tailored to Micronesia’s unique regulations. 

Lower Expansion Costs

Collaborate with an Employer of Record in Micronesia to expedite and simplify global growth while significantly reducing common expenses associated with expansion. Scale your operations without establishing a new entity in Micronesia, thereby minimizing overhead costs. 

Focus on Growing Your Company

An Employer of Record in Micronesia takes on all HR-related responsibilities, streamlining your operations and granting you the flexibility to concentrate solely on the international objectives of your business. 

Expand Effortlessly

Establishing a new company in Micronesia can be a time-consuming process. However, partnering with a local Employer of Record expedites the expansion process, allowing entry into the Micronesian market in as little as a week and ensuring a swift and efficient entry point. 

Manage Your HR Online

INS Global provides an efficient means to manage your diverse, global workforce online through an advanced digital platform. Leverage our proprietary cloud-based HR system to easily oversee all your employees and their needs remotely in Micronesia and the wider world. 

Why Choose an EOR in Micronesia Over Company Incorporation?

Establishing a new company in a foreign country can be intricate, especially if you are unfamiliar with local regulations. Collaborating with a Micronesian EOR saves time on expanding your business abroad, lowers expansion costs, ensures local compliance, and allows you to focus on growing your business within Micronesia. 

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does an EOR In Micronesia Work?

INS Global’s EOR in Micronesia facilitates your company’s expansion abroad in four simple steps tailored to the Micronesian business environment. 

 

  1. First, collaborate with your business to create a customized expansion plan that meets your specific needs. 
  2. Then, we provide the legal entity required to hire local staff or transfer them from abroad, ensuring compliance with Micronesia’s legal requirements. 
  3. We manage all HR-related tasks related to the move, including hiring, contract management, and payroll management, ensuring local compliance in Micronesia. 
  4. Immediately, your employees concentrate on your goals while we handle continuous and changing HR and legal compliance needs. 

What is the difference between PEO and Employer of Record Services in Micronesia?

In Micronesia, Professional Employer Organization (PEO) services handle various Human Resources tasks, serving as strategic HR partners. However, an Employer of Record (EOR) in Micronesia possesses the legal authority to hire and manage employees on your behalf, streamlining the process in accordance with Micronesia’s employment regulations.  

INS Global offers both support options, ensuring that you have the support required to expand comfortably, whether you need an EOR or PEO in Micronesia. 

Labor Law in Micronesia

Employment Contracts in Micronesia

  • Professional employment in Micronesia always starts with an official letter of employment. 
  • In most cases, employers can include a 6-month probation period in their contracts.  
  • An employer can end an employment contract early if the employee violates the conditions of their contract. 
  • Employees are entitled to 1 month’s notice if they have been with the company for longer than a year. 
  • Severance pay is not required by labor law in Micronesia. However, individual employment contracts may make provision for this. 

Working Hours in Micronesia

  • The working week in Micronesia runs from Monday to Friday. 
  • Full-time employees generally work 8 hours per day, 48 hours per week. 
  • Employees are not allowed to work more than 40 hours per week without receiving overtime pay. 
  • Employees are entitled to a higher hourly rate for overtime. While the rate is not set, it must be more than the base hourly rate. 

Annual Leave in Micronesia

  • Micronesia has 9 official national holidays. 
  • Employees are entitled to paid annual leave every year, and this should be noted in detail within their employment contract. 

Sick Leave in Micronesia

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible.  
  • Employees allocated sick leave should be noted in their employment contract. 
  • Employees can claim from social security during this time. 

Maternity / Paternity Leave in Micronesia

  • According to Micronesian law, female employees are entitled to 12 weeks of maternity leave. 
  • Maternity leave can be claimed from social security. 
  • Male employees are not entitled to paternity leave. 

Tax Laws in Micronesia

  • Employers in Micronesia are responsible for withholding all taxes and social contributions. 
  • Employers contribute the equivalent of 7.5% of the employee’s salary, while employees are not required to contribute. 
  • The corporate income tax rate is set at 21% for both local and foreign companies. 
  • Personal income tax is set at 10%. 
Employer Of Record Micronesia

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FAQs

While setting up a local entity is an option, collaborating with a local Employer of Record proves more efficient in Micronesia. Employer of Record services leverage local expertise, facilitating hiring and staff management on your behalf. 

An Employer of Record in Micronesia manages various HR tasks, including payroll, tax compliance, employment contracts, and social security contributions, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s EOR services, you can hire employees and expand to a new market in Micronesia in as little as a week. 

EOR service costs are directly linked to your employee’s salary, calculated as a percentage and covering all HR functions for compliant employment in Micronesia. 

Yes, collaborating with an Employer of Record in Micronesia is a legal and efficient solution, simplifying your expansion plans while reducing costs. 

Salaries are typically processed monthly for full-time employees, while part-time workers may be paid weekly or bi-monthly. 

Recruitment in Micronesia varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce. 

A Micronesian Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Micronesia are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund. 

INS Global tailors its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is not required by labor law in Micronesia. However, individual employment contracts may make provision for this. 

In Micronesia, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support in recruiting, hiring, and managing your workforce, regardless of your location. 

Micronesia observes 9 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced EOR in Micronesia ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Micronesian citizens and foreigners. 

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