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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2010</h1>
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<h1>Vanuatu</h1>
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<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 = 99.80 vatu.</div>
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<h2>Old Age, Disability, and Survivors</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First and current law:</span> 1986 (provident fund), implemented in 1987.</p>
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<p><span class="h4">Type of program:</span> Provident fund system.</p>
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<h3>Coverage</h3>
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<p>All employees aged 14 to 55 in regular employment, including members of cooperatives.</p>
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<p>Noncitizens may apply to the Provident Fund Board for exemption if covered by another country's social security scheme.</p>
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<p>Exclusions: Persons covered under employer-provided retirement programs approved by the Provident Fund Board; home-based workers; and certain other categories including prisoners, patients in psychiatric hospitals, and temporary workers in agriculture and forestry with employment contracts of less than 2 months.</p>
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<p>Voluntary coverage for persons without mandatory coverage aged 14 to 55, including self-employed persons.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> At least 4% of monthly earnings (additional voluntary contributions are permitted without limit). Voluntary contributors pay 1,000 vatu to 10,000 vatu a month.</p>
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<p>The minimum monthly earnings used to calculate contributions are 3,000 vatu.</p>
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<p><span class="h4">Self-employed person:</span> Voluntary contributions from 1,000 vatu to 10,000 vatu a month.</p>
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<p><span class="h4">Employer:</span> 4% of monthly payroll.</p>
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<p>The minimum monthly earnings used to calculate contributions are 3,000 vatu.</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4"><span class="nobr">Old-age</span> benefit:</span> Age 55; at any age if emigrating permanently. If the member has withdrawn any amount and makes additional contributions after age 55, no withdrawal is allowed until 2 years after the date of the last withdrawal, unless the member retires or dies.</p>
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<p><span class="h4">Disability benefit:</span> Must have a permanent incapacity for any employment due to a physical or mental disability. The disability is assessed by two registered medical practitioners.</p>
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<p><span class="h4">Survivor benefit:</span> Paid on the death of the fund member before retirement.</p>
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<p><span class="h4">Death benefit:</span> Paid to named survivors.</p>
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<h3><span class="nobr">Old-Age</span> Benefits</h3>
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<p><span class="h4"><span class="nobr">Old-age</span> benefit:</span> A lump sum of total employee and employer contributions plus interest is paid.</p>
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<p>Interest rate adjustment: The Provident Fund Board sets the rate annually depending on the financial performance of the fund.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability benefit:</span> A lump sum of total employee and employer contributions plus interest is paid.</p>
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<p>Interest rate adjustment: The Provident Fund Board sets the rate annually depending on the financial performance of the fund.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor benefit:</span> A lump sum of total employee and employer contributions plus compound interest is paid.</p>
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<p>Eligible survivors are the spouse, dependent parents of the deceased or of his or her spouse, and children. Survivors must be named by the deceased; the benefit is split among survivors as specified by the deceased.</p>
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<p>Interest rate adjustment: The Provident Fund Board sets the rate annually depending on the financial performance of the fund.</p>
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<p><span class="h4">Death benefit:</span> A lump sum of 175,000 vatu is paid to named survivors.</p>
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<h3>Administrative Organization</h3>
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<p>Ministry of Finance provides general supervision.</p>
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<p>Provident Fund Board (<a href="https://www.vnpf.com.vu">http://www.vnpf.com.vu</a>), a six-member tripartite board with a general manager, administers the program.</p>
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<p>Provident Fund Board appoints a commercial fund manager and sets the investment criteria.</p>
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<h2>Sickness and Maternity</h2>
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<h3>Regulatory Framework</h3>
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<p>No statutory benefits are provided for sickness and maternity.</p>
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<p>The 1983 Employment Act requires employers to:</p>
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<p>- provide 100% of wages for sick leave for up to 21 days a year, if the employee has been in continuous employment with the employer at least 12 months.</p>
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<p>- provide 100% of wages for maternity leave for up to 3 months, if the employee has been in continuous employment with the employer for at least 6 months. Employers are required to allow a mother to interrupt work twice a day for 1 hour to feed a nursing child.</p>
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<p>- provide medical care for workers and for their dependents when they are living on the employer's property.</p>
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<h2>Unemployment</h2>
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<h3>Regulatory Framework</h3>
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<p>No statutory benefits are provided for unemployment.</p>
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<p>The 1983 Employment Act requires employers to provide 8 weeks of severance pay for each year of employment. Employees are eligible after 1 year of work.</p>
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