employment

• A requirement to be paid no less than the minimum wage (currently 2024 to 30 June 2025 this is $9.50 per hour (this is reviewed annually)
• Full-time work is 35 hours per week, or more
• Any time worked over 40 hours per week must be paid at the rate of time and a half
• Any time worked on a statutory holiday must be paid at double time, or an additional leave day, or time of in lieu
• Minimum of 10 paid holiday leave days per year
• Minimum of 5 paid sick leave days per year
• Maternity leave is 6 weeks. Government funded maternity leave pay is not available to migrant workers.
• Paternity leave is up to 5 days
• A paid rest break of no less than 10 minutes is due after 3 hours of work
• A meal break (unpaid) is due after 5 hours of work
• An employer must paid the employee in the form of money
• Payment must be done as soon as the wages are due
• Payment must be accompanied by a written payslip indicating at a minimum
• Days and hours worked
• Gross amount of wages
• Any deductions made
• Net amount of wages payable
• An employer must not deduct money from an employees pay except if the deductions are for tax and superannuation, or agreed upon with the employee or as ordered by the Court.
• Note:  It is a requirement of the Cook Islands Immigration Act 2021 that it is an offence for a sponsor to seek reimbursement of any moneys paid as a result of the sponsorship (including flights, visa costs etc)
• An employee can resign freely by providing a minimum of one week’s notice at a minimum
• Note:  if you are no longer employed unless you have obtained new employment and your employer and sponsor agree to a transfer, then you will need to leave the Country.
• An employer can terminate an employee’s employment if:

• It is in accordance with the redundancy process
• The employee no longer has the capacity to carry out the duties required in the employment agreement
• The employee’s conduct warrants termination (either due to misconduct or serious misconduct)
• Other grounds that may be specified in a person’s employment agreement or common law
• NOTE: employers are required to notify the employee of the intention to terminate and the reasons for it. This process must also include the opportunity for the employee to be heard in relation to the termination before any final decision is made. In the event of a termination, an employee is entitled to be paid out their accrued holiday leave, any outstanding pay, and any other entitlements as set out under their employment agreement or under the Employment Relations Act 2012. An employer should also provide to the employee a written letter setting out the termination and the reasons for it.

• Any redundancy must be as a result of a genuine restructuring of an employer’s business that means the employee’s position is no longer available.
• An employer must keep a record, in English, containing the following information for each employee, these are:
• Employee’s name, age, address, and contact details
• Date on which employment commenced
• Job title
• Type of employment agreement and the details
• Hours of work and rate of pay, method of calculation
• All leaves entitlements and dates on which they are taken and paid
• Proof of payments

  Although this information is confidential, it can be accessed by the employee, by an employee’s representative, and an inspector

• Health and Safety 
• Every employer has a legal obligation to take all reasonably practicable steps to maintain a safe and healthy workplace and work environment for their workers. Additionally, an employer must comply with any reasonable request of an inspector to enter a work site and examine or inquire into any matter.
• Every employee has a legal obligation to take all reasonably practicable steps to ensure their safety while at work and that no action or inaction of the worker while at work causes harm to any other person.

In the Cook Islands, it is compulsory for employers and employees to contribute to the Cook Islands Superannuation fund (known as CINSF), unless you are under the age of 18, or you have reached the age of 55 and have opted out.
The Act can be found here.
When you join the superannuation fund, you are referred to as a Member. Members are required to pay 5% of their earnings and this is matched by employers who pay 5% also. These funds are invested in your compulsory account. To join, you must complete a registration form which can be found here.
You will be issued with a CINSF number which looks something like this: NSF and then six digits. You will need to provide confirmation of registration to your employer. Once registered, you will be able to access your account ‘online’. It is important you check this regularly to ensure your contributions are being correctly paid and applied to your account.

There is a Members Handbook online which can provide guidance for you to select which of the three investment accounts your funds will be invested in. Note: if you do not choose, then the funds will default to be invested in the Conservative account.

For Migrant Workers, you are able to withdraw your superannuation if you have worked and contributed to the account for a period of less than 3 years, following a stand down period of 6 months before you can claim. For periods of more than 3 years, you can transfer your balance to an approved overseas fund, or you can leave it here and remain invested until retirement age before you can access. If there is no approved schemes in your Country, then there is a 5 year waiting period before your funds can be paid out as a lump sum.

You can find more information on their website here.

Personal tax for employees in the Cook Islands is called “Pay As You Earn” or, PAYE. You must go to the tax department (Revenue Management Division of the Ministry of Finance) and complete an RM1 form. You will then be given a letter which provides you with an RMD Number (this is a 5 digit number). Retain this letter for your records, and provide your RMD number to your employer.

The current personal tax rates in the Cook Islands are as follows:
• Annual wage $14,600 and under is zero
• Over $14,600 and up to $30,000 is 17%
• Over $30,000 and up to $80,000 is 20%
• Over $80,000 is 30%

Your employer is required to deduct tax from your gross wages and pay this to the Government each month. At the end of the calendar year, the employer must file a reconciliation return to the Government, and provide each employee with a copy of their tax deduction certificate. This form is referred to as an RM101. You and the employer must sign both copies of this form, and employer retains one copy, and you retain the other.
By the 1st of March each year, you are required to complete a form referred to as an RM5 form. Get the form from the RMD office, and using the information from your RM101 form, complete and return to RMD. They will assess your tax situation as to whether your employer has deducted the correct amounts and whether there may be additional tax to pay, or whether you are entitled to a refund.
Note: There may be penalties that apply if you do not complete your tax obligations on time.

In summary, the Cook Islands is a full member of the International Labour Organisation and as such, all matters to do with employment regulations, legislation, and policies are reviewed and discussed at the National Labour Advisory Board. This board is a tripartite board and members include representatives from Government, Workers, and Employers. The Cook Islands has ratified various ILO conventions, and other international memorandums, declarations, and convenants, all of which endorse fundamental human rights of non-discrimination, equity, freedom of thought, conscience and religion, and protection for those with disabilities (as examples). The Cook Islands works closely with the International Labour Organisation to promote labour reform to more closely align Cook Islands legislation with best practice labour standards. The Country program for progressing this is called the Decent Work Country Programme (DWCP) and the programme which outlines the next phase is close to being finalized. All workers enjoy the protection of the Employment Relations Act 2012, no matter whether they are local workers or, migrant workers.