Northern-Mariana-Islands
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Payroll and Benefits Guide Northern Mariana Islands

Last updated: Mar 03, 2026

Currency
United States Dollar (USD)
Employer Taxes
7.65%
Payroll Frequency
Bi Weekly/Monthly
Employee Costs
7.65%
Capital
Saipan
Date Format
mm/dd/yyyy
Fiscal Year
1 October to 30 September
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Contribution

 Employer Payroll Contributions
6.2% Social Security (OASDI – Old-Age, Survivors, and Disability Insurance)
1.45% Medicare (Hospital Insurance)
7.65% Total Employer Costs

 

 Employee Payroll Contributions
6.2% Pension (Retirement)
1.45% Family and Maternity Benefits
7.65% Total Employee Costs

Income tax
• Resident individuals: Progressive annual rates (same as U.S. federal rates):
• 10% on up to USD 11,600
• 12% on USD 11,601–47,150
• 22% on USD 47,151–100,525
• 24% on USD 100,526–191,950
• 32% on USD 191,951–243,725
• 35% on USD 243,726–609,350
• 37% on above USD 609,350
• Non-resident individuals: Taxed on CNMI-source income at the same progressive rates
• PAYE Withholding: Employers deduct tax from wages each pay period and remit by the due dates set by the CNMI Department of Finance

Employer taxes

Highest
Lowest

Working Hours

Standard working hours: 40 hours per week, 8 hours per day

Overtime

The overtime provisions for private sector employees are primarily determined by the FLSA, which supersedes local law where it is more beneficial to the employee.

Aspect Regulation Details Notes
Maximum Ordinary Hours 40 hours per week. This is the standard maximum workweek set by the FLSA. The CNMI Labour Code also sets the standard workweek at 40 hours for most employees.
Overtime Threshold Overtime compensation is mandatory for all hours worked over 40 in a workweek. Unlike some other jurisdictions, the FLSA generally does not require premium pay for working more than 8 hours in a day.
Maximum Overtime Cap There is no statutory limit on the maximum number of overtime hours an adult employee may work. The employer is simply required to pay the mandatory premium for all hours worked over 40.
Exemptions Employees in certain executive, administrative, or professional roles who meet specific salary and duties tests are exempt from both minimum wage and overtime pay provisions (FLSA exemptions). The CNMI utilizes the special FLSA salary level for U.S. territories when determining exemption status.

Mandatory Overtime Pay Rates

The FLSA mandates a single minimum premium rate for all standard overtime.

Day/Condition Minimum Compensation Rate (Statutory) Total Pay Rate Notes
Standard Overtime (Beyond 40 hours/week) 1.5 times the employee’s regular rate of pay (Time and a half). 150% This is the non-negotiable federal minimum rate.
Public Holiday/Weekend Work No statutory minimum premium rate. 100% (Normal Rate) The FLSA does not require premium pay for work performed on weekends or public holidays; compensation is paid at the normal hourly rate, unless the employment contract or employer policy specifies otherwise.

Compensation Method

  • Monetary Pay: The payment of the 3$150\%$ premium is mandatory.

  • Compensatory Time Off (Public Sector): While private sector employment is governed by the FLSA’s cash payment rule, certain government employees in the CNMI may be compensated with Compensatory Time (time off in lieu) at a rate of $1.5$ hours off for every $1$ hour of overtime worked.

Payroll

Payroll cycle is typically biweekly or monthly; wages paid on scheduled paydays set by employer.

13th Salary
Not mandatory; may be offered as a bonus at employer’s discretion.

Leave

Annual Leave (vacation)

There is no universal statutory requirement for private-sector annual (vacation) leave in the CNMI; the amount is generally determined by employer policy or contractual agreement. common practice is 5–15 days/year based on tenure.

Public Holidays

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King Jr.’s Birthday Standard holiday
16 February 2026 Monday President’s Day Standard holiday
24 March 2026 Tuesday Commonwealth Covenant Day
3 April 2026 Friday Good Friday Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth National Independence Day Standard holiday
3 July 2026 Friday Independence Day Holiday Standard holiday
4 July 2026 Saturday Independence Day Standard holiday
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Commonwealth Cultural Day
4 November 2026 Wednesday Citizenship Day
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
8 December 2026 Tuesday Constitution Day
25 December 2026 Friday Christmas Day Standard holiday

Sick Days

The CNMI Labor Code does not mandate provision of sick leave for private-sector employees—such entitlements are usually determined by employer policy or collective agreements.

Maternity Leave

Maternity leave  provides 6 weeks of unpaid leave to expecting mothers. They may use accrued paid leave if available.

Bereavement Leave

Typically 3–5 days for immediate family; not legally mandated.

Employer taxes

Highest
Lowest

Termination

Termination Process

Employment in the CNMI generally follows the “at-will” doctrine, meaning employers or employees may terminate the relationship at any time, for any lawful reason, unless bound by a contract or collective agreement. Termination cannot violate anti-discrimination or retaliation laws, ensuring safeguards against wrongful or unsafe dismissal.

For foreign workers, employment contracts—such as the Nonresident Worker Employment Agreement (NRWEA)—commonly include detailed termination clauses, specifying allowed causes, notice, and any procedural requirements.

Salary payment interval / date Final payment on termination Bank account/payment-method requirement
Wages must be paid at “regular intervals” as agreed in the employment contract; there is no publicly located CNMI law that fixes a maximum interval (e.g., “monthly by X day”) for all employees. When employment ends, the employer is obliged to pay all wages and sums due under employment law. The law requires payment of wages in legal tender or equivalent.

Notice Period

There is no statutory notice period mandated under CNMI labor law for either at-will or contract-based terminations.

Contracts (particularly NRWEAs and indefinite or fixed-term agreements) often define their own notice requirements, ranging from immediate termination in serious misconduct cases to several days or weeks’ notice depending on the role and agreement terms.

Severance Pay

The CNMI has no statutory requirement obliging employers to provide severance pay, whether due to dismissal, redundancy, or resignation. Where severance is paid, it is typically governed by specific contractual provisions or collective bargaining agreements, and not by legislated standards.

Probation

There is no statutory limit on how long probation periods may last in the CNMI.. Employer practices generally align with U.S. norms, with 30 to 90 days being common. During this time, both parties can evaluate fit, with termination often allowed on shorter notice within the probationary window

Immigration

VISA

Foreign nationals must have valid U.S. work authorization to be employed in the CNMI. The main route is the CW-1 (CNMI-Only Transitional Worker) visa, available until December 31, 2029 under U.S. law. Employers initiate the process by petitioning USCIS, then the worker applies with supporting documents (passport, contract, certifications). Processing can take weeks to months and is subject to annual numerical caps.

Other U.S. visa types (H-1B, H-2B, etc.) may also apply depending on the role. Once approved, the worker must hold the visa/permit before starting employment. Employers must complete Form I-9 verification and often E-Verify.

Exemptions: U.S. citizens and nationals do not require a visa.

Minimum Wage

The CNMI does not set its own minimum wage; instead, it is aligned with the U.S. federal minimum wage, currently USD 7.25 per hour, and has been since 2015.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

VAT

There is no VAT or sales tax in the CNMI. Instead, the CNMI imposes a Gross Revenue Tax (GRT) on businesses, generally at 5% of gross receipts, subject to certain thresholds and exemptions. This is a business tax and not a direct tax on employees or wages.

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Public Holidays Calendar

Northern Mariana Islands
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King Jr.’s Birthday Standard holiday
16 February 2026 Monday President’s Day Standard holiday
24 March 2026 Tuesday Commonwealth Covenant Day
3 April 2026 Friday Good Friday Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth National Independence Day Standard holiday
3 July 2026 Friday Independence Day Holiday Standard holiday
4 July 2026 Saturday Independence Day Standard holiday
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Commonwealth Cultural Day
4 November 2026 Wednesday Citizenship Day
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
8 December 2026 Tuesday Constitution Day
25 December 2026 Friday Christmas Day Standard holiday