For global companies looking for new pools of talent, hiring in American Samoa offers something unique. As the name implies, it’s a U.S. territory that operates under federal labor standards and uses the U.S. dollar, but sits 2,500 miles southwest of Hawaii with its own distinct workforce and cultural identity.
This creates an unusual advantage where you get the simplicity of domestic hiring with access to a Pacific Island talent pool. According to the U.S. Small Business Administration, American Samoa employed 6,955 people across 600 business establishments. The workforce is primarily concentrated in the services sector (46.4% of employment), and most of the population speaks Samoan, while about half are fluent in English.
What American Samoa lacks in size, it makes up for in legal simplicity for U.S.-based companies. You avoid the typical international hiring headaches because workers here are U.S. nationals. No work visas, no foreign entity requirements, no currency fluctuations impacting payroll. For distributed teams testing Pacific expansion or needing niche regional expertise, hiring in American Samoa represents an often-overlooked entry point with significantly lower administrative friction than hiring in Australia, New Zealand, or other independent Pacific nations.
American Samoa’s labor market
The labor force here follows a traditional Pacific Island economy model. Manufacturing leads employment at 18% (primarily tuna processing), followed closely by public administration at 17% and education at 17%. About half the workforce operates in the private sector, while 45% work for the American Samoa Government, creating a stable employment landscape.
Pago Pago serves as the economic center of Tutuila, the main island where most business is concentrated. English and Samoan function as primary business languages, with most professionals operating comfortably in both. This bilingual capability matters for companies seeking cultural competency across Pacific markets or customer-facing roles.
The average salary in American Samoa is just under US$60,000 per year, significantly below mainland U.S. rates. Tech roles command higher compensation, with software engineers averaging about US$99,000 annually. The cost of living (including rent) runs 58% below mainland rates, creating meaningful savings for distributed companies while offering competitive local wages. The territory’s strategic location in the South Pacific puts it in a unique position for companies needing coverage across Asia-Pacific time zones or cultural bridges to Pacific Island markets.
The remote tech sector remains nascent here. You will not find a thriving startup ecosystem or coding bootcamps churning out developers. Instead, there is a small pool of educated professionals who can handle remote work across customer service, administrative operations, and specialized roles that benefit from Pacific time zone coverage. For companies, American Samoa works best as a strategic hire rather than a talent hub. Think one or two key people who bring regional expertise, not a fully distributed workforce.
How to hire employees in American Samoa
When you decide to bring someone onto your team in American Samoa, you face the same fork in the road that every expanding company encounters: build your own infrastructure or partner with someone who already has it.
Establish a legal entity in American Samoa
Setting up your own entity gives you direct control over hiring, payroll, and operations. You’ll need to register a business with the American Samoa Department of Commerce, obtain an Employer Identification Number, and establish local payroll systems that comply with territorial labor laws and tax requirements.
This route makes sense if you’re planning a significant long-term presence in the territory or hiring many employees. The challenge is the upfront investment, which includes legal fees, registration costs, ongoing compliance management, and the time it takes to navigate a system that operates differently from the mainland U.S. despite its territorial status. It will usually take weeks or even months before your first employee is punching a clock.
Partner with an Employer of Record (EOR)
With this route, an employer of record becomes the legal employer of your workers while you maintain day-to-day management and direction. The EOR handles payroll processing, tax withholding, benefits administration, and compliance with local employment regulations. You avoid entity setup entirely and can hire within days rather than months.
Partnering with an EOR in American Samoa works best for companies testing the local market, hiring one or two strategic employees, or those who want to stay lean without building in-house expertise in territorial employment law. The tradeoff is ongoing service fees, but you gain speed and eliminate the administrative burden of maintaining local infrastructure you might not need long-term.
Employment contracts in American Samoa
Employment contracts in American Samoa follow principles similar to mainland U.S. law but operate under territorial regulations. Written contracts are not legally required for all positions, though they’re strongly recommended to establish clear terms around compensation, duties, and termination conditions. Most employment follows an at-will structure unless a contract specifies otherwise or union agreements apply.
Your contracts should address standard elements, like job title and responsibilities, compensation structure, work location (particularly relevant for remote arrangements), and any probationary periods. While verbal agreements hold legal weight, written documentation protects both parties when questions arise about expectations or terms. Given the distance and time zone differences between American Samoa and most company headquarters, putting everything in writing becomes even more critical for distributed teams.
Working hours, holidays, and leave
The standard workweek in American Samoa is 40 hours long. Any hours worked over 40 will constitute overtime, which requires payment at 1.5 times the hourly rate. The FLSA applies to all employees working in American Samoa, just like it does in states across the mainland. However, there are certain exceptions related to wages based on industry type in American Samoa.
Leave entitlements follow patterns similar to U.S. federal employee benefits:
- Employees earn sick leave at a rate of four hours per biweekly pay period
- Annual leave accrues based on length of service
- Mothers receive 12 weeks of paid maternity leave (six weeks prenatal and six weeks postnatal)
- Public holidays are observed, though the territory celebrates some Pacific-specific observances alongside federal holidays
Employee benefits and social contributions
American Samoa operates its own social security system separate from the U.S. Social Security Administration. Both employers and employees contribute to the American Samoa Government Social Security system, which funds retirement, disability, and survivor benefits for territorial residents. The contribution rates and wage base limits are set by territorial legislation and may differ from mainland FICA rates.
Beyond mandatory social security contributions, employers typically offer health insurance and other benefits depending on company policy and competitive positioning. There’s no legal requirement for 13th month pay or certain bonuses common in other Pacific nations. Employee benefits packages matter for attracting talent in a small labor market where government jobs often provide comprehensive coverage and compete directly with private sector employers for qualified workers.
Payroll and taxation in American Samoa
American Samoa maintains its own tax system distinct from the U.S. federal income tax structure. Employees who are bona fide residents of American Samoa generally pay income taxes to the territorial government rather than the IRS. The income tax system in American Samoa combines the federal tax table on earnings up to $100,000. After that, local tax rates apply, including a minimum 4% tax on Annual Gross Income (AGI) and a 2% wage tax on all wages earned in the territory.
Payroll processing requires attention to territorial-specific requirements. You’ll withhold employee portions of social security contributions, territorial income tax, and any other applicable deductions. Employers must remit these amounts along with their own social security contributions on a regular schedule, typically quarterly. Currency is straightforward since American Samoa uses the U.S. dollar, but the administrative systems for filing and payment run through territorial agencies that operate on Pacific time.
Employee vs. contractor classification
The line between employee and independent contractor matters just as much in American Samoa as it does on the mainland. The FLSA applies here, which means the Department of Labor’s economic reality test determines classification. This test examines whether a worker is genuinely in business for themselves or economically dependent on your company for work.
Key factors in the classification decision include:
- The degree of control you exercise over how and when work gets done
- Whether the worker has the opportunity for profit or loss based on managerial decisions
- The permanence of the working relationship
- Whether the work performed is integral to your core business operations
Misclassification carries real consequences. Workers incorrectly labeled as contractors miss out on overtime pay, unemployment insurance, and other employee protections. Companies face penalties and back pay obligations if audited. The general rule is straightforward: if someone works like an employee (fixed hours, your tools, your direction), they need to be classified as one regardless of what the contract says.
Termination and severance in American Samoa
Employment in American Samoa generally follows at-will principles. You can terminate employees for any reason that does not violate discrimination laws or constitute retaliation. Protections exist against wrongful termination, particularly when dismissals involve protected characteristics or whistleblower activities.
Severance pay is not legally mandated in American Samoa unless specified in an employment contract or union agreement. Government positions or certain industries may include severance provisions, but private sector employers have no automatic obligation to provide them. If you do offer severance, document the terms clearly in your employment agreements to avoid disputes later about what employees should receive upon departure.
Work permits and immigration
Here’s where American Samoa diverges significantly from hiring anywhere else. The territory maintains its own immigration system separate from U.S. immigration law. People born in American Samoa are U.S. nationals (not citizens), which means they can live and work anywhere in the United States without restriction but face different rules than U.S. citizens.
For foreign workers, you need to navigate American Samoa’s entry permit process. Foreign nationals require employment authorization from the American Samoa government, not from U.S. Citizenship and Immigration Services. The process involves sponsorship from a local employer or resident, background checks, and documentation that can include bond requirements. Even U.S. citizens planning to stay longer than 30 days need approval from the Attorney General’s office. This creates an unusual situation where hiring a local U.S. national is administratively simpler than bringing in workers from the mainland or abroad.
FAQs: Hiring in American Samoa
Here are the most frequent questions employers have when hiring in American Samoa.
What is the work culture in American Samoa?
Work culture here blends American business practices with Pacific Island values like communal relationships and respect for hierarchy. The pace tends to be more relationship-focused than deadline-driven compared to mainland tech hubs. Expect bilingual communication, strong ties between colleagues, and a workforce where nearly half work in government roles that emphasize stability over rapid scaling.
Can I hire in American Samoa without a local business entity?
Yes. An employer of record lets you hire workers without establishing your own legal entity in the territory. The EOR becomes the legal employer while you manage your team’s work and operations. This route works well for companies testing the market or hiring a small number of employees. This option completely avoids the overhead of entity registration and ongoing compliance management.
What jobs are in high demand in American Samoa?
Traditional sectors dominate: tuna processing, government administration, education, and healthcare. Tech roles and remote digital work remain limited compared to established Pacific hubs like New Zealand or Australia. The demand leans toward roles that serve local operations rather than remote positions for global companies, though this creates opportunity for employers willing to train or bring remote expertise to an underserved market.
What is a good salary in American Samoa?
A good salary in American Samoa typically falls between $80,000 and $120,000 annually for professional roles. This range is considered well above the territorial average of about $60,000 and reflects competitive compensation for skilled positions in technology, management, and specialized services. Tech professionals can command the higher end of this spectrum, with software engineering roles reaching close to $100,000.
Can I work in American Samoa as a U.S. citizen?
U.S. citizens can enter American Samoa but need approval from the Attorney General’s office if staying longer than 30 days. This creates an unusual barrier even for mainland Americans. The territory maintains its own immigration controls separate from federal U.S. immigration law, so standard assumptions about moving freely within U.S. territories do not fully apply here.
Hire in American Samoa with Pebl
Hiring in American Samoa has a lot of perks, but just like the mainland (or other countries), setting up a local entity for hiring takes a lot of time and money.
If you want to hire in days, not months, Pebl can help.
With our employer of record services, we give you a way into American Samoa without the months of entity setup and compliance overhead. Our local experts operate in 185+ countries worldwide, and we handle immigration rules, tax systems, and employment regulations so you don’t have to. When you’re ready to learn more, contact us.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
© 2026 Pebl, LLC. All rights reserved.
Topic:
Country Guides
