Working in Wallis and Futuna: Local Labour Code, Minimum Wage, Contributions and Taxes

Wallis and Futuna is part of the Republic: a French citizen works without a visa or authorisation. The State services specify that foreign nationals, including those of the European Union, need an authorisation from the senior administrator to take paid employment. The territory does not apply the mainland labour code: the standard contract refers to the labour code applicable in the territory (law no. 52-1322 of 15 December 1952 as amended) and to the territorial inter-professional agreement of 31 October 2013. The Court of Audit reminds readers that the general tax code and the social security code are not extended to the territory, and that the territorial assembly has the power to create taxes, duties and contributions.

The labour and social affairs inspectorate (SITAS) advises employers and employees, checks the application of labour law, conciliates individual and collective disputes, runs the labour advisory commission and also manages integration (local development worksites, employment of 16-26 year-olds). A hiring bonus exists for a young jobseeker under 26 hired full time on a fixed-term contract: 20% of the SMIG for the first two years, 10% for the third. The page on living in Wallis and Futuna presents the arrival formalities.

The SMIG is set locally by order and revised periodically. It is of the order of XPF 592 an hour, i.e. about XPF 100,000 for 169 monthly-paid hours. At the fixed parity of XPF 119.3317 for €1, this is equivalent to about €838 a month and €4.96 an hour, a level below the mainland SMIC (minimum wage). The State services publish the SMIG history and a pay scale.

Insee (the French national statistics institute) records an employment rate of about 60% for 15-64 year-olds, three people in work in four employed full time and nearly one in five carrying out a side activity, mainly crafts and farming. Unemployment by the census definition is of the order of 8%, markedly higher among under-25s. The IEOM (the overseas issuing institute) states that the labour market remains dominated by the public sector, that the private sector grew across all activities and that construction is very dependent on public orders.

• Contract: a fixed-term contract cannot exceed two years, renewals included, and three years for an employee whose usual residence is outside the territory when the contract is concluded (Article 31). The trial period is limited to three months at most, renewal included (Article 33).
• Working time: 39 hours a week, 169 hours a month for monthly salaries; 25% premium from the 40th to the 47th hour, 50% beyond, 75% on Sundays and public holidays, 100% at night (order no. 93-196).
• Paid leave: two and a half working days per month of work, up to thirty working days; one extra day per child under fourteen for mothers (Article 121).
• Termination: in case of dismissal other than for gross misconduct, the statutory notice is one month between six months and two years of service, and two months beyond, unless more favourable provisions apply; the inter-professional agreement provides for two weeks to three months (Article 38).
• Sickness: the contract is suspended during absence for illness certified by an approved doctor, up to six months, and the employer pays an allowance equal to pay within the limit of normal notice (Articles 47 and 48).
• Maternity: suspension of the contract six weeks before and ten weeks after childbirth; the employee is entitled to free care and half her salary, paid by the compensation fund (Article 116). The Caisse des prestations sociales manages the maternity leave allowance.
• Special hardship allowance: an employee whose usual residence is far from the place of employment receives an allowance intended to offset the cost of coming and staying (Article 94). In case of engagement on trial, repatriation is borne by the employer (Article 33).

The Caisse des prestations sociales (CPSWF) is a territorial public body that manages the basic pension, family benefits and maternity leave. It has about 250 employers, 2,300 contributing employees and more than 800 pensioners according to the Court of Audit. The total contribution was raised gradually to 27%, of which 7% borne by the employee and 20% by the employer (CPSWF page, latest published rate). The Court of Audit presents the breakdown: 21% of salaries for pensions, borne two thirds by the employer and one third by the employee, and a 6% employer contribution for family benefits.

No health insurance contribution is deducted: health is funded by the State. The Court of Audit also notes that there is neither unemployment insurance nor industrial accident cover in the mainland sense, and the Ministry for Overseas stated that the mainland unemployment insurance scheme does not cover Wallis and Futuna. The employer declares the employee before hiring to the CPSWF (pre-hiring declaration online, by email, at the counter or by registered post). For compensation of an industrial accident, case law recalls an allowance provided by order in the absence of a social security scheme. See also the page on healthcare reimbursement.

According to the Court of Audit, no national taxation is levied in Wallis and Futuna: taxation consists almost exclusively of indirect taxes, apart from the business licence taxes (patentes) levied on companies; with no income or corporate tax, households file no income return and companies have no accounting obligation. The territory funds its spending with about €25 million of local tax revenue, to which more than €200 million a year from the State budget is added.

Customs apply import duties and taxes with allowances for travellers (for example XPF 30,000 of other goods per traveller over 17) and the professional patente is aimed at non-salaried activities. The Court of Audit report raises as an option a contribution on high incomes, with a scale of 0 to 20%, which would mainly hit people from mainland France; no decision to that effect was found in the official sources consulted, and the competence belongs to the territorial assembly. Before departure, a check with the State services and the public finance department of attachment is advisable.

A self-employed person works under a patente, calculated on the turnover of each establishment, with a fixed charge and a proportional charge. Any affiliation to the Caisse des prestations sociales is confirmed with it. Remote work is not covered by the official sources consulted: a mainland employer and the CPSWF confirm the applicable social legislation in writing before departure, because care outside the territory is not covered by a local body.

A State civil servant assigned on site comes under the civil service status: the Assurance Maladie (French public health insurance) states that they must have kept their carte Vitale to be covered during their stays in mainland France, while the IGAS (the French social affairs inspectorate) notes “blind spots” in the cover of posted civil servants during their stay in mainland France. Public employment accounts for more than half of jobs. See the glossary entry on the posted worker and the guide to secondee or expatriate.

The economy remains highly dependent on the State and public spending. The IEOM judges it broadly well oriented but fragile: household consumption supports activity, the private sector grows, and local banks remain in deposit surplus over loans. Trade is an engine of the economy, driven by demand for basic necessities.

The currency is the Pacific franc, at a fixed parity with the euro. The territory is in demographic decline: the Court of Audit cites projections of a continuing fall in population, with rapid ageing. The outlook depends on public investment, securing land tenure, the submarine cable linking the archipelago to Samoa and Fiji, and the investment aid opened each year by the State services. Recruitment offers can be consulted on the territory’s State services website.