FSM Minimum Wage & Employer Total Cost Calculator
Compute true employer staffing costs across national ($3.00/hr) and state jurisdictions (Pohnpei, Chuuk, Yap, Kosrae). Accurately incorporates 7.5% employer FSMSSA, 3.0% MiCare health insurance, workers compensation, and paid leave provisions in US Dollars ($).
Wage Standard & Work Schedule
Annual Total Cost: $7,300.80 USD (+17.0% statutory overhead)
• FSMSSA Quarterly Returns: Employer 7.5% + Employee 7.5% must be remitted by the 10th day of the second month following each quarter.
• Wages Tax Withholding: National Wages Tax (6% / 10%) must also be remitted quarterly to the CTA under Title 54.
Statutory Minimum Wage Rates by Jurisdiction (Micronesia)
| Jurisdiction | Hourly Floor | Weekly Wage (40h) | Monthly Basic Gross | Employer Cost (+17%) |
|---|---|---|---|---|
| FSM National Government | $3.00 / hr | $120.00 | $520.00 | $608.40 |
| Pohnpei State Private | $2.00 / hr | $80.00 | $346.67 | $405.60 |
| Yap State Private | $1.60 / hr | $64.00 | $277.33 | $324.48 |
| Kosrae State Private | $1.42 / hr | $56.80 | $246.13 | $287.98 |
| Chuuk State Private | $1.25 / hr | $50.00 | $216.67 | $253.50 |
Frequently Asked Questions (FAQ) - FSM Minimum Wages
What is the national minimum wage in the Federated States of Micronesia?
The FSM National Government enforces a minimum wage of $3.00 per hour for national government employees and federally regulated interstate commerce workers.
How do state private sector minimum wages differ across Micronesia?
Each state sets its own private sector wage floor: Pohnpei is $2.00/hr, Yap is $1.60/hr, Kosrae is $1.42/hr, and Chuuk is $1.25/hr.
What mandatory social security contributions must FSM employers pay?
Under Title 53 of the FSM Code, employers must contribute 7.5% of gross covered employee earnings to the FSM Social Security Administration (FSMSSA) each calendar quarter, matching the 7.5% employee withholding.
What is the employer contribution rate for MiCare health insurance?
Employers participating in the MiCare National Health Insurance Plan contribute 3.0% of gross wages to match the 3.0% employee deduction for comprehensive island medical coverage.
What is the average total overhead added to basic wages for FSM employers?
Statutory employer contributions (7.5% FSMSSA + 3.0% MiCare + ~1.5% workers compensation + ~5% paid leave accruals) typically add 15% to 17% in overhead on top of basic gross wages.
Engr. Muhammad Shahzad
Verified Technical AuthorPrincipal Civil & Systems Software Engineer specializing in Pacific Island statutory fiscal models, computational payroll algorithms, and Title 51/54 FSMC frameworks.
📊 FSM National CTA & Social Security Administration Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (USD) |
|---|---|
| Primary Net / Statutory Payable Amount | $0.00 USD |