Learn about mandatory and optional employee benefits in Marshall Islands
In the Marshall Islands, there are two mandatory employee benefits: Social Security (Retirement) Insurance and the Basic Health Insurance Plan.
The Marshall Islands Social Security Administration (MISSA) administers the mandatory Social Security (Retirement) Insurance program. Both employers and employees contribute a percentage of the employee's wages to the program. The contribution rates are:
Upon reaching the retirement age (currently 63 years old), eligible employees can receive a monthly pension benefit.
The Basic Health Insurance Plan provides basic medical coverage for employees. The cost of this plan is shared between employers and employees:
It's important to note that the implementation of the Workers' Compensation Law, which would introduce cash benefits and rehabilitation for work-related accidents, has been deferred.
In the Marshall Islands, employers often offer a variety of additional benefits to attract and retain employees. These optional benefits can range from extended insurance coverage to paid time off and professional development opportunities.
Some employers provide optional life insurance plans for employees, with the option to extend coverage to dependents. The employee typically pays the premium for this benefit.
The Basic Health Insurance Plan offers baseline coverage. Employers may provide extended health insurance plans that cover a wider range of medical services or have lower deductibles.
In addition to mandatory national holidays, employers may offer paid time off benefits such as:
While not mandated by law, paid time off is a common benefit offered by employers in the Marshall Islands. Specific details on the amount of paid time off will vary depending on the employer and position.
Some employers may offer additional benefits to enhance their employee value proposition. These might include:
The specific benefits offered by employers in the Marshall Islands will vary depending on the company size, industry, and overall compensation strategy. Job postings and employer websites can provide insights into the benefits offered by different organizations.
In the Marshall Islands, all employees are required to have basic health insurance coverage. This mandatory program is administered through the Ministry of Health and Environment.
The cost of the Basic Health Insurance Plan is shared between employers and employees. The employee contributes a portion of the premium, the exact amount of which may vary. The employer contributes the remaining portion of the premium.
The specifics of what the Basic Health Insurance Plan covers are not publicly available. However, it is likely to provide basic medical services such as doctor visits, hospital stays, and some medications.
Employers may offer extended health insurance plans alongside the mandatory Basic Health Insurance Plan. These plans typically cover a wider range of medical services or have lower deductibles than the basic plan.
While the Basic Health Insurance Plan provides baseline coverage, it may not encompass all medical needs. Employees should consider their individual health situations and explore options for supplemental insurance if necessary.
In the Marshall Islands, employees have two primary retirement planning options: the Marshall Islands Social Security Administration (MISSA) and private retirement savings plans.
MISSA administers a social security program that provides a monthly pension benefit upon retirement.
It's important to note that the MISSA pension benefit may not be sufficient to fully replace pre-retirement income.
There is a growing trend of employers offering, or employees seeking out, private retirement savings plans. These plans offer several advantages:
While there are no official statistics on the prevalence of private retirement savings plans in the Marshall Islands, anecdotal evidence suggests an increase in their popularity.
We're here to help you on your global hiring journey.