Social Security Contributions in Micronesia

Micronesia operates a mandatory social security system administered by the FSM Social Security System (FSSS). Both employees and employers must contribute to the system, which provides retirement pensions, disability benefits, and survivor benefits.

Overview of FSM Social Security System

The FSM Social Security System manages several benefit programs:

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

Contribution Rates (2026)

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

Employee Contributions (Total: 6%)

• Social Security: 6%

Employer Contributions (Total: 6%)

• Social Security: 6%

Registration

All employers must register with the FSM Social Security System. Registration requires:

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

Monthly Declarations

Employers must submit monthly contribution declarations to the FSSS, detailing:

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

Declarations and payments are due by the 15th day of the following month.

Social Security Benefits

Retirement Pension

• Retirement age: 60 years
• Minimum contributions: 15 years (180 months)
• Pension amount: Based on average salary and contribution history

Disability Benefits

• Available for workers who become disabled before retirement age
• Amount based on contribution history

Survivor Benefits

• Benefits paid to eligible dependents of deceased workers

International Social Security

Micronesia has limited bilateral social security agreements. Employees seconded to Micronesia from countries with agreements may be exempt from FSM social security contributions for a limited period.

Penalties for Non-Compliance

• Late registration: fines apply
• Late declaration: penalties per month of delay
• Late payment: interest per month
• False declaration: substantial penalties
• Non-compliance may result in legal action