Timor-Leste

Population

Timor-Leste, also known as East Timor, has a population of approximately 1.3 million people (as of 2023). The population is ethnically diverse, with Tetum speakers being the largest group. Other significant ethnic groups include Mambai, Kemak, and Bunak. The majority of the population lives in rural areas, with around 70% of the people engaged in agriculture.

Capital

The capital of Timor-Leste is Dili, the largest city in the country and the political, economic, and cultural hub. Dili is home to the government offices, key educational institutions, and the country’s main port.

Economic Strength

Timor-Leste’s economy is heavily reliant on oil and gas exports, which make up about 90% of the government’s revenue. Despite these rich resources, the country remains one of the poorest in Southeast Asia due to over-dependence on oil. Agriculture, particularly coffee, rice, and maize farming, plays an essential role in the livelihoods of the majority of the population. The government is working to diversify the economy, promoting sectors such as tourism and fisheries.

Culture

Timor-Leste’s culture is a blend of Malay, Portuguese, and Catholic traditions. Catholicism is the dominant religion, with around 97% of the population being Catholic. The official languages are Tetum and Portuguese, with Tetum being the more widely spoken. Festivals and rituals that incorporate both local and religious elements are deeply rooted in society. Important celebrations, such as Easter and Christmas, play a significant role in the country’s cultural life.

Currency

The official currency of Timor-Leste is the US Dollar (USD). Centavos coins, based on the US cent, are also used in smaller transactions. The US Dollar was introduced in 2000 to provide stability after independence.

Health Insurance and Social Security System

Timor-Leste has a public healthcare system that provides free basic health services to the population. However, the healthcare infrastructure, especially in rural areas, is limited, and many people have restricted access to quality medical care. A formal social security system is still being developed, but for now, it remains limited. Some workers in specific sectors have access to basic pensions and unemployment benefits, though these are minimal.

Employer Costs

Employer costs in Timor-Leste are relatively low compared to other countries, as there is currently no comprehensive social security scheme. Employers are required to pay minimum wages and cover certain employment-related costs. The minimum wage is set at $115 USD per month (as of 2023). For employers in the formal sectors, there are no mandatory social security contributions.

Salary and Bonuses

Salaries in Timor-Leste are generally low, with the minimum wage set at $115 USD per month. Bonuses and additional benefits, such as a 13th-month salary, are not typically mandated by law, although some larger companies or international organizations may offer them. Most employees are paid on a monthly basis.

Payslip

In Timor-Leste, salaries are usually paid monthly. Employers are required to pay wages on time and make any necessary deductions for taxes and other statutory contributions, where applicable. Tax deductions are typically straightforward, as many workers earn below the taxable income threshold.

Public Holidays

Timor-Leste observes several public holidays, including religious and national celebrations. The most significant holidays include:

• Independence Day (November 28)
• Restoration of Independence (May 20)
• Easter (variable)
• Christmas (December 25)
• Labour Day (May 1)

On public holidays, employees are entitled to a day off or additional pay if they are required to work.

Working Hours

The standard working hours in Timor-Leste are 8 hours per day or 44 hours per week. Overtime is allowed, but it must be compensated with a 50% or higher premium on the regular wage. The typical workweek runs from Monday to Friday, with Saturday being a half-day in some cases.

Leave

Employees in Timor-Leste are entitled to a minimum of 12 days of paid annual leave per year. In addition, there is paid leave for special occasions such as weddings or family obligations, and maternity leave is granted for at least 12 weeks, typically paid by the employer.

Sick Leave

In cases of illness, employees in Timor-Leste are entitled to up to 30 days of paid sick leave per year. Sick pay is provided by the employer. For longer-term illnesses, there are no standardized national policies, as the social security system is still being developed.

Termination/Severance

Termination of employment in Timor-Leste must comply with the country’s labor laws. Employees are entitled to a notice period that typically ranges from two weeks to one month, depending on the length of employment. Severance pay is not mandated by law but may be provided in cases of redundancy or as part of individual employment contracts.