Hire Employees in Samoa

Two routes exist. Registering a Samoan entity gives you direct employment, but it also requires Foreign Investment Board approval, which the EOR model avoids entirely.

An Employer of Record is the legal employer, runs payroll, files the monthly schedules and remits contributions, while day-to-day direction stays with you.

One registration rule shapes onboarding. An employer must not employ a person who is not registered with the Fund, the individual has to register with SNPF first. That sequencing cannot be reversed.

Two levies apply, and together they reach 22% of income. The Samoa National Provident Fund takes 10% from the employer and 10% from the employee, and the Accident Compensation Corporation takes a further 1% from each side.

There is no minimum wage floor for these contributions, they apply to all earned wages regardless of level.

One provision is unlike anything in comparable systems. Where an employer pays less than the required minimum wage, the employer must not deduct the 10% portion from the employee’s wages and must instead pay the full 20% themselves. Underpaying wages therefore doubles the provident fund cost, the penalty is built into the contribution mechanism rather than sitting alongside it.

Note that SNPF’s own guidance still cites a minimum wage of $3.00 an hour when describing that rule. The current figure is WST 4.84.

Break-even rule of thumb: EOR fees begin to exceed the running cost of a Samoan entity somewhere between 12 and 20 employees, though investment approval shifts the calculation. Model both, see EOR vs Entity.

The SNPF was created under the SNPF Act 1972 as a compulsory retirement savings programme covering all employees of registered organisations.

Employers deduct 10% from gross wages and remit 20% in total, the employee’s share plus a matching employer portion. The base is broad: gross wages include overtime, allowances, bonuses and any compensation of monetary value receivable in relation to employment.

Contributions are due on the 7th day after month end. Failure to pay within 21 days of month end attracts a penalty surcharge of 2% per month. Note that one guide gives the 14th instead, the Fund’s own guidance says the 7th.

Employees may contribute more than the 10% minimum, but the employer must notify SNPF in writing and remit the extra alongside the standard 20%.

The ACC scheme is unusually broad. Established under the Accident Compensation Act 1989, it provides no-fault cover for personal injury, medical expenses, rehabilitation and up to 70% of lost earnings, and applies 24 hours a day, both at work and outside it.

One publisher states SNPF rates of 5% and 5% elsewhere in its own material. The Fund and the government services portal both confirm 10% and 10%.

Gross monthly salaries in tala. Employer cost is 11% with no ceiling.

Benchmarks below are gross monthly salaries in tala. Employer cost is 11% across the provident fund and accident levy, with no contribution ceiling.

PAYE bands are unchanged for 2026 per the Ministry of Customs and Revenue: nil on income up to WST 15,000, 20% from WST 15,001 to 30,000, and 27% above WST 30,000, under the Income Tax Act 2012.

A different four-band structure is also published, 15% to WST 25,000, 25% to WST 35,000 and 27% above, by the same publisher elsewhere. Use the MCR-referenced bands and confirm if in doubt.

Two deadlines and two filings. PAYE is remitted by the 7th day of the following month, and a monthly payroll return on Form P4 must be filed even if no PAYE is due. An annual reconciliation of all wages and tax is generally due by 30 September after year-end, with income tax returns by 31 March.

VAGST is 15%, with registration required at annual turnover of SAT 130,000 or more.

Progressive bands under the Income Tax Act 2012, confirmed unchanged for 2026 by the Ministry of Customs and Revenue.

Employment is governed by the Labour and Employment Relations Act 2013, amended by Act No. 2 of 2023, which modified several operational provisions, repealed the original Schedule 1 and tightened public holiday substitution under section 39(3).

The minimum wage rose to WST 4.84 an hour on 1 July 2025 across all sectors, completing a two-stage Cabinet adjustment from WST 4.00 in July 2024. It was the first material increase in over a decade, and works out at roughly WST 839 a month on a 40-hour week.

Written employment contracts are required, setting out salary, benefits, working hours and termination conditions. Annual leave starts at 10 working days after one year and increases with tenure.

Enforcement has teeth. The MCIL Labour Inspectorate Unit conducts inspections, particularly in tourism, agriculture, manufacturing, retail and services. Paying below the minimum wage can bring fines up to WST 10,000 or imprisonment up to 12 months.

Written contracts are required and must cover salary, benefits, hours and termination.

Register with SNPF and confirm the employee is registered too, an employer may not engage anyone who is not already a Fund member. Registration is free and an employer number is issued.

Maintain a register of all employees recording names, birth dates, commencement dates, NPF numbers and wages, as required by the SNPF Act.

The standard week is 40 hours. Overtime and public holiday pay follow the Labour and Employment Relations Act.

The contribution base is broad, taking in overtime, allowances and bonuses, so additional pay carries the full 11% employer charge.

Allowances provided under contract are generally treated as taxable cash wages and included in both the SNPF and ACC base.

Samoa observes national and Christian public holidays, including Independence Day in June and White Sunday in October. Substitution rules were tightened by the 2023 amendment.

Samoa observes national and Christian public holidays, including Independence Day in June and White Sunday in October. Substitution rules were tightened by the 2023 amendment. Dates are set out below.

The SNPF provides compulsory retirement savings; the ACC provides no-fault accident cover.

ACC coverage is round-the-clock. It applies 24 hours a day, at work and outside it, paying medical expenses, rehabilitation and up to 70% of lost earnings, without requiring the employee to pursue a legal claim.

There is no statutory requirement for private pension plans beyond the mandatory SNPF contributions, though many employers offer supplemental savings with tax advantages.

Annual leave begins at 10 working days after one year of service and increases with tenure.

Termination follows the Labour and Employment Relations Act 2013 as amended.

SNPF contributions must be brought fully up to date at the point of termination to avoid penalties, arrears cannot be left to settle afterwards.

Final pay including accrued leave is due on separation and must appear in the month’s schedule and Form P4 return.

SNPF must be informed immediately on sale of the business, transfer of ownership, a period of ceased operation or closure, enclosing the last contribution payment and schedule.

The EOR model avoids Foreign Investment Board approval, which an entity would require, often the deciding factor for a small team.

Work authorisation for foreign nationals is employer-sponsored; confirm current requirements before committing to a start date.

This guide covers the Independent State of Samoa only. American Samoa is a United States territory with a separate tax system based on US law, and nothing here applies to it.

Deducting the employee share while paying below the minimum wage is expressly prohibited. In that situation the employer must fund the entire 20%, so underpaying wages doubles the provident fund cost.

Two PAYE band structures are in circulation from the same publisher. The MCR-referenced set for 2026 is nil to WST 15,000, 20% to 30,000 and 27% above.

The provident fund rate is also published two ways. 10% and 10% by the Fund itself and the government portal, but 5% and 5% in one commercial guide.

Note also the 2% monthly surcharge after 21 days; that an employer may not engage anyone unregistered with the Fund; and that SNPF’s own page still cites a $3.00 hourly minimum wage.

Work backwards from the start date. An EOR hire takes three to six weeks; an entity adds Foreign Investment Board approval to a two to five month process.

Never deduct the employee share where pay falls below the minimum wage, the full 20% is the employer’s.

Confirm the employee is SNPF-registered before engaging them, use the MCR 2026 bands, remit by the 7th, file Form P4 monthly regardless, and clear contributions fully before any termination.