Economic Overview, Greater Sunrise Gas Mega-Project & Organic Coffee
Timor-Leste utilizes US Dollar legal tender and holds the multi-billion dollar Greater Sunrise offshore gas field.
Key Economic Clusters
- Offshore Petroleum (Greater Sunrise): Upstream deepwater natural gas extraction and onshore LNG processing.
- Sovereign Petroleum Fund: Over $18B+ USD sovereign wealth fund safeguarding long-term economic development.
- Specialty Organic Coffee & Fisheries: Fair-trade organic high-altitude Arabica coffee and South Pacific tuna transshipment.
Employment Contracts, Labour Code (Law 4/2012) & Probation
Regulated by the Labour Code of Timor-Leste (Law No. 4/2012).
- Written Contracts: Mandatory in Portuguese or Tetum specifying remuneration and job duties.
- Probation Period: Maximum statutory probation is 1 month for general workers and 3 months for technicians/executives.
Working Hours, Leave & Social Security (INSS 6% Employer)
- Standard Hours: 44 hours per week (typically 8 hours/day Monday–Friday + 4 hours Saturday, or 8.8 hrs/day over 5 days).
- Annual Leave: Minimum 12 working days paid vacation per year (increases with tenure up to 24 working days).
- Public Holidays: ~14 official national and Catholic religious holidays.
- Maternity Leave: 12 weeks (84 calendar days) fully paid by the employer / INSS.
- Social Security (INSS): Employers contribute 6.0% and employees contribute 4.0% of gross salary (10% total).
Why Use an Employer of Record (EOR) in Timor-Leste
- Rapid Energy Sector Hiring: Onboard petroleum engineers, environmental scientists, and project managers in Dili in days.
- INSS & Tax Compliance: Full administration of 6% employer social security and local 10% wage tax withholdings.
Hiring in Timor-Leste? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
