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Last updated: August 9, 2026
Employment Cost Calculator for Timor-Leste
Calculate your complete hiring costs for Timor-Leste employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Wage Income Tax (PAYE) - Resident | 0% up to $500 monthly; 10% over $500 monthly | Employee's gross salary |
| Wage Income Tax (PAYE) - Non-Resident | 10% (flat rate) | Total monthly salary |
| Social Security Contribution (Employer) | 6% | Employee's gross salary |
| Social Security Contribution (Employee) | 4% (withheld by employer) | Employee's gross salary |
Filing & Compliance
- Monthly PAYE and Social Security contributions are due by the 15th day of the following month.
- Employers must provide employees with an annual statement of income and withheld taxes.
- Annual Employer Wage Income Tax Withholding Form is due by March 31st following the end of the tax year.
Income Tax Brackets
| Income Range (USD Monthly) | Tax Rate |
|---|---|
| Up to $500 | 0% |
| More than $500 | 10% |
Non-residents are taxed at a flat rate of 10% on total monthly salary, with no tax-free threshold.
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Security | 4% | Based on gross salary, including basic pay, allowances, and bonuses. |
Personal Allowances
- A tax-free threshold applies to the first portion of monthly income.
- No specific personal deductions are generally available for employment income.
- A personal tax credit of $10 per month against wages income tax payable may be allowed for residents.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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