Table of Contents

Solomon Islands

Table of Contents

Currency

Solomon Islands Dollar (SBD)

Payroll Frequency

Weekly, Monthly, or Bi-Monthly

Employer Taxes

20%

About Solomon Islands

The Solomon Islands is an archipelago located in the South Pacific Ocean, consisting of nearly 1,000 islands. This tropical paradise is renowned for its pristine beaches, crystal-clear waters, and vibrant coral reefs. The country offers abundant opportunities for diving, snorkeling, and exploring the diverse marine life. Beyond its natural beauty, the Solomon Islands is steeped in rich cultural heritage and traditions. The indigenous communities have a strong connection to their ancestral practices, showcased through vibrant festivals, traditional dances, and intricate handicrafts.

Employment Relationship

• Permanent Employment

Every employment contract is deemed to be from month to month in Solomon Islands, unless there is an agreement to the contrary. Permanent employment contracts can be terminated with a month's notice or payment in lieu of notice by either party.

• Fixed-Term or Specific-Purpose Contracts

Every employment contract is deemed to be from month to month in Solomon Islands, unless there is an agreement to the contrary. Fixed-term contracts end at the end of their term. They can be renewed under the same contract. The law does not provide any limit on the duration of fixed-term contracts.

• Temporary Employment Contratcs

In Solomon Islands, casual employees are employed on a temporary or irregular basis at an hourly or daily rate of wages payable at the end of each day, or completion of a task or piece of work that can be completed in less than a week.

Probationary Period

In Solomon Islands, the first 6 months of an apprenticeship contract are considered probationary period. Any agreement to the contrary, whether expressed or implied, shall be null and void.

Working Hours

The normal working hours of employees must not exceed 45 hours a week in Solomon Islands. Employment contracts can agree on a lower maximum number of hours. Hours of work must be arranged to only require an employee's presence at the place of work for 12 hours daily. Employees must be given a weekly rest of 24 continuous hours and must not work for more than 6 days a week. Employers shall notify employees, by posting notices in conspicuous places in the work premises or other appropriate places or by such other method as may be approved, of the hours at which work begins and ends, including shift work, the rest intervals during the period of work which are not reckoned as part of the working hours, and the weekly rest period to be accorded to employees.

Holidays / PTO

• Statutory Holidays

Holidays

• Paid Annual Leave

All employees in Solomon Islands are entitled to an annual leave of at least 1.25 working days for each complete calendar month of employment in an undertaking. They are paid at their normal wage rates for the duration of their leave.  Employees are also entitled to be paid the cost of return journeys between their place of employment and their home for them, their spouses, and a maximum of 4 dependent children under the age of 18 years. This cost is paid once a year. Employers decide the route and method of travel. Employees traveling to their homes while taking an annual leave are given additional days of leave to compensate for the days spent in travel.

• Sick Leave

Employees who have worked for at least 26 weeks with the same employer are entitled to 22 days' paid sick leave in a calendar year. This rule does not apply to absence from work caused due to personal injury by accident arising out of and in the course of employment or in any other circumstances in which the employer is liable to pay compensation to the workman under the Workmen's Compensation Act.

• Maternity Leave

All female employees, other than casual employees, are entitled to paid maternity leave of 12 weeks. At least 6 weeks' leave must be taken after delivery. The remainder of the period of maternity leave is not compulsory but can be provided before the presumed date of delivery or following the expiration of the compulsory leave period. Maternity leave can be further extended if required due to a medical complication after submitting a certificate from a medical practitioner. This additional leave is deducted from the employee's annual or sick leave entitlement. Employees are paid at least 25% of their normal wage rate for 12 weeks and at the full rate for any annual or sick leave availed by them. They are also entitled to medical benefits, including prenatal, delivery, and post-natal care and hospitalization where necessary, as may be provided by government or private medical services.  Employees cannot be dismissed while they are on maternity leave. Employees who don't return to work after the expiry of their leave are regarded as having abandoned their employment without due notice and shall be required to pay their employers an amount equivalent to the wages payable during the period of notice. 

• Paternity Leave

There are no statutory paternity leave benefits in Solomon Islands.

Termination of Employment

• Notice Period

Employment contracts can be terminated by either party by giving a month's notice or payment in lieu of notice to the other party in Solomon Islands. Notice of termination must be given in writing. All wages due to the employee are paid to them on the day on which the contract is terminated. 

• Severance Benefits

Employees dismissed for redundancy are eligible for redundancy payment. It is calculated as the rate of weekly basic wage multiplied by the number of weeks of employment divided by 26. The maximum amount of redundancy pay is 65 times the weekly basic wage. Employees who have attained the age of 50 years at the time of dismissal are not entitled to redundancy payment. Employees whose employers have paid contributions to the Solomon Islands National Provident Fund and have completed one year of service with their employers are entitled to long service benefit, paid by their employers. The amount of long service benefit to which an employee is entitled is calculated as weekly basic wage multiplied by the number of weeks of employment divided by 29.