FACTSHEET: MINIMUM WAGES
1. WHERE CAN I FIND THE LAWS ON MINIMUM WAGES?
Minimum wages information is found in Orders made under the Minimum Wages and Minimum Wages Board Act [Cap 182]. As of April 2014 the most recent Minimum Wage Order is Order 109 of 2012.
2. WHAT IS THE AMOUNT OF MINIMUM WAGE?
The current amount of the minimum wage is 170 vatu per hour. This is the rate that must be paid for regular hours of work of up to 44 hours per week, or 8 hours per day – see factsheet: hours of work. If the regular hours are exceeded, overtime must be paid in accordance with the law – see factsheet: overtime.
There are four exceptions to the standard minimum wage rate:
- seasonal copra cutters shall be paid a minimum of 13.5 per cent of the price fixed by the Vanuatu Commodities Marketing Board for hot air or sun-dried copra (Minimum Wage Order 3(1));
- seasonal cocoa cutters shall be paid a minimum of 6 per cent of the price fixed by the Vanuatu Commodities Marketing Board for 1st grade cocoa (Minimum Wage Order 3(2));
- students engaged during school holidays shall be paid a minimum of 250 vatu per day (Minimum Wage Order 4(1)(a));
- children who are employed in accordance with the relevant sections of the Employment Act shall be paid a minimum of 250 vatu per day (Minimum Wage Order 4(1)(b)).
3. DOES THE MINIMUM WAGE RATE INCLUDE VNPF CONTRIBUTIONS?
The rate of the minimum wage includes the employees’ VNPF contribution, but excludes the employer’s VNPF contribution.
3. IS THERE A MONTHLY MINIMUM WAGE?
There is no official monthly minimum wage. If you want to pay your employee a monthly salary that is based on the minimum wage you must make sure that if you divide the monthly salary by the usual hours of work per month this amount is still equal to or higher than the hourly minimum wage.
