How does formal work differ from informal and subsistence work in Vanuatu?

Formal work usually has an identifiable employer or registered activity, documented conditions and clearer access to legal records and protections. Informal and subsistence work are widespread but may not provide written employment records or the same access to employment services and protections.

Which public services handle work-related matters in Vanuatu?

The Department of Labour and Employment Services handles key employment and labour matters, the Vanuatu National Provident Fund handles provident-fund services, and Immigration and Passport Services handles immigration-related work requirements. Business registration, tax identification and business licences involve the VFSC, the Department of Customs and Inland Revenue and the relevant municipal or provincial authority.

What does the 4.5% unemployment rate mean for work in Vanuatu?

The 4.5% figure measures people with no work who were available for work and seeking it in the 2025 Labour Force Survey. It does not capture all labour underuse: the survey recorded broader labour underuse at 24.6%, while many people worked informally or in subsistence activities.

When does a business activity become subject to VAT registration in Vanuatu?

VAT registration becomes mandatory when taxable supplies exceed or are expected to exceed VT 4 million within 12 months. The business must assess its taxable supplies and follow the applicable requirements of the Department of Customs and Inland Revenue.

Work in Vanuatu

Work in Vanuatu includes paid employment, running a business, professional activity, job seeking and work in the informal or subsistence economy. The rules and available protections depend on the work arrangement, sector, location, qualifications and whether the activity is formally registered. Public services cover employment rights, employers, work permits, provident-fund contributions, occupational safety, job access and business registration.

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Employment

Employment means contract, working time, pay, rights and duties.

Employer

An employer in Vanuatu organises work, hires and manages employees, pays wages and provides safe working conditions. The main framework includes the Employment Act [CAP.160], the Health and Safety at Work Act [CAP.195], the Labour (Work Permits) Act [CAP.187] and the Vanuatu National Provident Fund Act [CAP.189]. Employer duties cover contracts, working time, leave, records, social contributions, work permits, safety, insurance and fair treatment. The Department of Labour and Employment Services and the Vanuatu National Provident Fund provide the main public services.

Unemployment

Unemployment in Vanuatu is measured as having no work, being available to work and seeking work. The 2025 Vanuatu Labour Force Survey recorded a 4.5% unemployment rate, but broader underuse of labour was 24.6%, and many people worked informally or in subsistence activities. Vanuatu has no nationwide unemployment insurance or unemployment benefit in the current sources reviewed. Support therefore centres on job access, termination rights, provident-fund rules and temporary household assistance rather than a regular claimant payment.

Labor market

Vanuatu’s labor market combines a formal wage sector with a large informal and subsistence economy. In the 2025 Labour Force Survey, 49.8% of the working-age population was in the labor force, unemployment was 4.5%, and 58.5% of employed people worked informally. Access and earnings differ between Port Vila, Luganville, rural and outer-island communities, sectors, qualifications and genders.

Professions

Professions in Vanuatu include work in agriculture, fishing, forestry, tourism, trades, public services, health, education, business, infrastructure and environmental management. Entry may depend on practical skills, formal qualifications, registration, licensing or experience. Formal and informal work coexist, especially in rural communities, so the path into a profession depends on the occupation and the responsible authority.

Business

Business in Vanuatu can operate as a sole trader, partnership, company, community company or registered overseas company, while many small activities remain informal. Formal operation usually combines registration with the Vanuatu Financial Services Commission (VFSC), a tax identification number from the Department of Customs and Inland Revenue (DCIR) and a business licence from the relevant municipal or provincial authority. Value-added tax (VAT) registration becomes mandatory when taxable supplies exceed or are expected to exceed VT 4 million within 12 months.

People in Vanuatu work as employees, employers, business owners, professionals, job seekers and participants in informal or subsistence activities. Formal wage employment usually involves an employer, agreed conditions, wage records and legal duties concerning contracts, working time, leave, safety and termination. Informal work and subsistence production remain widespread, particularly outside the main urban centres, but they may provide fewer written records and fewer accessible employment protections. Employment matters include finding a job, agreeing conditions, receiving wages, taking leave and ending the employment relationship. Employers organise work, pay employees, keep required records, manage safety and address obligations such as work permits and Vanuatu National Provident Fund contributions. The Department of Labour and Employment Services handles key labour matters, while the Vanuatu National Provident Fund administers provident-fund services and Immigration and Passport Services deals with immigration-related work requirements. Unemployment statistics do not describe every form of labour underuse. The 2025 Vanuatu Labour Force Survey recorded unemployment at 4.5%, while broader labour underuse reached 24.6%; many people worked informally or in subsistence activities. The sources reviewed do not show a nationwide unemployment insurance or unemployment-benefit system, so support may instead involve job access, termination rights, provident-fund rules or temporary household assistance. Vanuatu’s labour market differs between Port Vila, Luganville, rural areas and outer islands. Agriculture, fishing, forestry, tourism, trades, public services, health, education, business, infrastructure and environmental management offer different paths into work. Some professions require practical experience, formal qualifications, registration or a licence from the responsible authority. A business may operate as a sole trader, partnership, company, community company or registered overseas company. Formal business activity commonly requires VFSC registration, a tax identification number from the Department of Customs and Inland Revenue and a business licence from the relevant municipal or provincial authority. VAT registration becomes mandatory when taxable supplies exceed or are expected to exceed VT 4 million within 12 months.

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