Social Security Contributions in Marshall Islands

The Marshall Islands operates a mandatory social security system administered by the Marshall Islands Social Security Administration (MISSA). Both employees and employers must contribute to the system, which provides retirement pensions, disability benefits, and survivor benefits.

Overview of MISSA

MISSA manages several social security programs:

• Retirement Pensions: Old-age, disability, and survivor pensions
• Disability Benefits: Coverage for work-related and non-work-related disabilities
• Survivor Benefits: Benefits for dependents of deceased workers

Contribution Rates (2026)

Contributions are calculated as a percentage of the employee's gross monthly salary, subject to a maximum monthly ceiling of $5,000.

Employee Contribution: 6%

• Retirement pension: 6%

Employer Contribution: 6%

• Retirement pension: 6%

Registration

All employers must register with MISSA within 30 days of hiring their first employee. Registration requires:

• Company registration certificate
• Tax identification number (TIN)
• List of employees with personal details
• Employment contracts

Quarterly Declarations

Employers must submit quarterly contribution declarations to MISSA, detailing:

• Each employee's gross salary
• Employee and employer contributions
• Any adjustments from previous quarters

Declarations and payments are due quarterly. Late payments incur penalties.

Social Security Benefits

Retirement Pension

• Retirement age: 60 years
• Minimum contributions: 10 years (120 months)
• Pension amount: Based on average salary and years of contributions

Disability Benefits

• Full disability: Percentage of covered earnings
• Partial disability: Reduced benefit based on degree of disability

Survivor Benefits

• Surviving spouse: Percentage of deceased worker's pension
• Children: Additional benefits for dependent children

International Social Security

The Marshall Islands has limited bilateral social security agreements. Employees seconded to the Marshall Islands from countries with agreements may be exempt from local social security contributions for a limited period.

Penalties for Non-Compliance

• Late registration: Monetary fine
• Late declaration: Per-period penalty
• Late payment: Interest on overdue amounts
• False declaration: Percentage of underpaid contributions