Employment in Timor-Leste

Workers find private jobs through SIMU, direct applications, company contacts and informal channels. SIMU allows a user to create a profile, upload a CV, search vacancies, apply and receive job alerts. Public-sector vacancies use the Portal de Vagas da Função Pública, institution-specific portals, CFP procedures and the Ministério das Finanças e-Recruitment system. Applications through these portals are generally free. Public recruitment is intended to use transparent, merit- and competence-based selection; a vacancy normally proceeds through application, CV screening, interview, references, qualification and criminal-record checks, negotiation and signature. Public temporary contracts do not create civil-servant status. Their recruitment notice must generally remain open for at least 15 days, and a CV is normally limited to six pages with three professional references. The Lei do Trabalho, also called Law 4/2012, provides the main employment framework. A private employment contract should be written in Tetum or Portuguese and signed by both parties. It should state the parties, position and duties, workplace, working time and breaks, pay and payment frequency, job category, contract dates, probation period, and, for a fixed-term contract, the reason and duration. Missing written form does not automatically invalidate the employment relationship, but it creates consequences for the employer; missing written duration or form will generally support treatment as an indefinite contract. Fixed-term employment is intended for a temporary employer need and may last up to three years including renewals. Probation may last up to one month for an indefinite contract, or up to three months for a complex or trust-based function. For a fixed-term contract, probation may last up to eight days when the contract is no longer than six months and up to 15 days when it is longer. The statutory minimum wage is currently USD 115 per month. A proposed increase to USD 154–160 was under discussion in 2026 but had not been confirmed as effective in the reviewed Jornal da República. Pay may be made in cash, by cheque or bank transfer at intervals no longer than one month, and the worker should receive a statement showing gross pay, net pay and deductions. A yearly allowance of at least one monthly wage is due by 20 December, with a proportional amount when only part of the relevant work period was completed. Overtime, transport, meals, accommodation and other special allowances are not part of regular pay for this purpose. The general working-time limit is eight hours per day and 44 hours per week. Public full-time employment generally uses eight hours per day and 40 hours per week. After five uninterrupted hours, the worker receives at least a one-hour break. Overtime is paid at 50% above the normal rate, while work on the weekly rest day or a public holiday is paid at 100% above the normal rate. Overtime is limited to four hours per day and 16 hours per week. Night work from 21:00 to 06:00 receives a 25% supplement. Workers receive at least 12 working days of annual leave; when employment ends before a full annual cycle, the entitlement is generally one day for each month worked. A public holiday does not reduce pay. Employees with fixed-term or indefinite contracts must be registered with INSS, the national social security system. The employer should register the worker by the first remuneration statement, with coverage taking effect from the start of work. The contribution is 10% of the applicable contribution base: 4% is paid by the worker and 6% by the employer. The base includes basic pay, the 13th-month payment, night, shift and remote-work allowances, and certain compensation, but excludes overtime, travel and accommodation payments, meal allowances, bonuses and representation costs. INSS registration supports access to old-age, invalidity, survivors' and parental benefits when the relevant conditions are met. The old-age pension currently begins at age 60; the contribution waiting period is 84 months in 2026 and rises to 120 months from 2032. Timor-Leste does not currently have an identified general contributory unemployment insurance scheme. Employers must provide a safe workplace, assess risks, prevent hazards, provide protective equipment and training, keep personnel records and pay on time. Workers must attend reliably, work carefully, follow lawful instructions, protect work tools and comply with safety rules. Safety measures must not be charged to workers. A parity commission is required where an employer has more than 20 employees or special workplace risks. Equal treatment applies to access to work, training, conditions and pay. Discrimination based on matters such as sex, nationality, age, disability, health, religion or political belief is prohibited. The minimum working age is 15; work by children aged 13 to 15 is limited to light work and cannot be dangerous or harmful to health. Paid maternity leave lasts at least 12 weeks, including at least 10 weeks after birth. Pregnancy interruption provides four weeks, and paid paternity leave provides five days. During breastfeeding until the child reaches six years, the worker receives two one-hour breaks per day. Pregnant or breastfeeding workers cannot be required to perform night work or overtime. Leave to care for a sick or injured child may last up to five days per year, but that leave is unpaid. Dismissal because of pregnancy, breastfeeding or maternity is not allowed. Employment can end through expiry, written agreement, resignation, dismissal for a serious reason, market or structural reasons, technological reasons or death. A worker may leave immediately for a serious employer breach or resign without a serious reason by giving 30 days' notice. An employer ending employment for permitted reasons generally gives at least 15 days' notice when seniority is up to two years and 30 days when seniority exceeds two years. During the notice period, the worker receives two working days per week as time credit for job searching. Missing notice can require payment for the remaining notice days. A worker may usually challenge an invalid termination within 60 days and may seek reinstatement, back pay or the applicable statutory compensation. The Labour Inspectorate checks legal compliance. Individual employment disputes generally require conciliation or mediation before court proceedings, except in certain invalid-termination cases. Individual arbitration is voluntary, while collective arbitration can be requested. SEFOPE's labour-relations and inspection services are practical points of contact; the Labour Arbitration Council is provided for, while courts decide cases until the competent bodies are operational. Foreign workers have the same employment rights and duties but generally need a written contract, official approval and a work permit or working visa. The application normally uses the employment or service contract, a SEFOPE opinion and migration documents. Registration with INSS requires a passport normally valid for at least six months. Domestic work has no confirmed specific regime in the reviewed material, and domestic workers' INSS participation is currently voluntary. Family work in small subsistence businesses is outside the Labour Code, so wage, protection and benefit access can be fragmented. In 2021, employees made up 48.3% of workers, self-employed workers 35.1% and contributing family workers 15.3%; women were more exposed to informal and unpaid work. These figures explain why a signed contract, INSS registration and a record of pay can materially affect the protection available in practice.