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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2008</h1>
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<h1>Vanuatu</h1>
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<div class="exchangeRate">Exchange rate: <abbr>US</abbr>$1.00 equals 94.44 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, with 1989, 1998, 2000, 2001, and 2003 amendments.</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 between ages 14 and 55 in regular employment, including members of cooperative societies.</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; persons in prison, accredited schools, mental hospitals, or leper asylums; and temporary workers in agriculture and forestry with employment contracts of less than 2 months.</p>
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<p>Voluntary coverage for ministers of religious organizations and for any person without mandatory coverage between ages 14 and 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 a ceiling). Voluntary contributors pay between 1,000 vatu and 10,000 vatu a month.</p>
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<p>The minimum monthly earnings for contribution calculation purposes are 3,000 vatu.</p>
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<p><span class="h4">Self-employed person:</span> Voluntary contributions only.</p>
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<p><span class="h4">Employer:</span> 6% of monthly payroll.</p>
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<p>The minimum monthly earnings for contribution calculation purposes 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">Old-age 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 be permanently incapable of 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>Old-Age Benefits</h3>
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<p><span class="h4">Old-age benefit:</span> A lump sum is paid of total employee and employer contributions, plus compound interest.</p>
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<p>Interest rate adjustment: Set annually by the Provident Fund Board 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 is paid of total employee and employer contributions, plus compound interest.</p>
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<p>Interest rate adjustment: Set annually by the Provident Fund Board 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 is paid of total employee and employer contributions, plus compound interest.</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, and the benefit is split among survivors as specified by the deceased.</p>
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<p>Interest rate adjustment: Set annually by the Provident Fund Board depending on the financial performance of the fund.</p>
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<p><span class="h4">Death benefit:</span> A lump sum of 230,000 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>Managed by a general manager, a <span class="nobr">six-member</span> tripartite Provident Fund Board (<a href="https://www.vnpf.com.vu">http://www.vnpf.com.vu</a>) administers the program.</p>
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<p>Provident Fund Board is responsible for appointing a commercial fund manager and for setting 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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<ul>
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<li>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 for 12 months or more.</li>
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<li>provide 50% of wages for maternity leave of up to 12 weeks (6 weeks before and 6 weeks after the expected date of childbirth). Employers are required to allow a mother to interrupt work twice a day for 30 minutes to feed a nursing child.</li>
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<li>provide medical care for workers and for their dependents when they are living on the employer's property.</li>
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