The Solomon Islands might not be the first place you think of when building a global team, but don't count it out. This Pacific nation offers a growing workforce, strong local networks, and a unique regional presence. The challenge? Figuring out how to hire and pay someone there without falling into compliance traps.
This guide gives you the clear, practical steps to do exactly that.
Navigate legal requirements for hiring in Solomon Islands
If you're planning to hire locally, you'll need to follow a few non-negotiable legal steps. Doing this every time will protect your business and your new hire.
Get familiar with the Employment Act and local labor laws
The Solomon Islands' Employment Act sets the foundation for how you hire. That means every job offer needs a written contract that covers:
- What the job is and whether it's full-time, part-time, or fixed-term
- Pay rate, hours, and how overtime is handled
- Leave policies and benefits
- Termination notice periods and reasons you can legally end employment
The minimum wage currently sits at SBD $8/hour (US$1), and there's no longer a split between sectors-it applies across the board. Worker protections are baked into the law, from how terminations must be handled to how severance pay works.
To keep up with changes, monitor the Solomon Islands Government Gazette and the ILO's Solomon Islands legislation database.
Register your business and meet documentation requirements
Hiring someone as the official employer looks like this:
- Get a business license from the Ministry of Commerce
- Register with the Solomon Islands National Provident Fund (SINPF)
- Secure a company tax ID through the Inland Revenue Division (IRD)
- Register each employee with SINPF
- Draft and store written employment agreements and employee files
The SINPF is like your local social security agency. You contribute 7.5% of an employee's gross salary, and they contribute 5%. Skipping this is not an option.
Avoid misclassification mistakes
If you think labeling someone a "contractor" helps you skip taxes or benefits, you're playing a risky game. In the Solomon Islands, it's all about how the person works.
If they follow your schedule, use your tools, and report to you? They're probably an employee, not a contractor. Misclassification can lead to penalties and back pay. It's just not worth it.
Set up payroll and make sure people get paid correctly
Once your company is legally registered and ready to go, it's time to figure out payroll. Paying people the right way means understanding local expectations.
Pick a pay schedule and stay compliant with payroll taxes
Most companies pay monthly or biweekly. Whatever you choose, spell it out clearly in the employment contract.
Each pay period, you'll need to:
- Withhold income tax based on the
- Calculate both employee and employer SINPF contributions
- Deduct any other agreed amounts, like union dues or loan repayments
And don't forget: keep your payroll records organized and on hand for at least five years.
Understand the benefits you're required to offer
Employee benefits in the Solomon Islands aren't optional. Here's what your payroll must account for:
- Annual leave. 15 paid working days per year after 12 months on the job
- Sick leave. 10 days of paid leave annually, with a medical certificate after two days
- Maternity leave. 12 weeks of paid time off, fully covered by the employer
These benefits need to be factored into your planning, not added in as an afterthought.
Tips and resources for a smooth hiring process
Hiring in a new country always comes with a learning curve. You'll want to:
- Build a checklist of all your registration and documentation steps
- Create clear onboarding workflows
- Review legal updates every few months (laws in the Pacific region change more often than you'd think)
Resources like the Ministry of Commerce and the Pacific Legal Information Institute offer public updates on labor rules and employer responsibilities.
How an Employer of Record (EOR) can help
Not ready to open a local entity in the Solomon Islands? You don't have to.
By partnering with an employer of record, they become the legal employer on your behalf. That means they handle local hiring, write up compliant contracts, run payroll, file taxes, and make sure every requirement is met-from SINPF contributions to annual leave calculations.
Here's why an EOR might make sense:
- You avoid the hassle (and high cost) of setting up a local company
- You stay compliant with changing laws
- Your employees get local benefits and protections while you get peace of mind
You get to build your team. They handle the red tape.
Why hiring right matters in the Solomon Islands
There's no shortcut to sustainable hiring. The Solomon Islands government is keeping a closer eye on foreign businesses, and enforcement is real-especially in industries like fisheries, mining, and construction.
When you follow the rules, pay people fairly, and offer the right benefits, you build long-term relationships with your team. You build your reputation, too.
Set a reminder every quarter to review payroll practices, update employee contracts, and double-check SINPF submissions. These are small moves that prevent big problems.
Pebl makes it simple to hire in the Solomon Islands
If you're ready to hire in the Solomon Islands but want to avoid a maze of labor laws and tax forms, Pebl is here to help.
Our employer of record service lets you hire and pay employees in the Solomon Islands without setting up a local entity. Our local experts manage contracts, payroll, compliance, and benefits faster and cheaper than setting up a local entity. Whether you're hiring your first employee or scaling a full team, we make sure your people are paid on time and everything's done by the book.
And when you're ready to expand further? We operate in 185+ countries worldwide.
Let's build your global team the right way. Contact us to learn more.
Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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