Payroll for Organisations in Timor-Leste · How Xefe Works — Payroll an Auditor Can Follow · Pricing — One Rate, Agreed Annually · Request Access to Xefe · Accountant Access in Xefe · The Xefe Engine — Timor-Leste Payroll Law in Code · Timor-Leste Salary Calculator — Net Pay after WIT and INSS · Security for Your Xefe Account · Xefe Documentation — How Timor-Leste Payroll Really Works · Getting Started — Xefe Documentation · Running Payroll — Xefe Documentation · Taxes & Statutory Filings — Xefe Documentation · Invoices, Bills & Expenses — Xefe Documentation · Attendance, Leave & Shifts — Xefe Documentation · Privacy Policy · Terms of ServiceTimor-Leste Salary Calculator — Net Pay after WIT and INSSMonthly salary to take-home pay in Timor-Leste: 10% wage tax above $500 for residents, 4% employee INSS and 6% employer INSS. Runs Xefe's payroll engine.Type a monthly salary to see the wage income tax (WIT), the employee's INSS and the take-home pay, and what the month costs the employer. It runs Xefe's payroll engine, the same code that pays real payrolls.Common salaries for a resident employeeOne month, with no overtime and no allowances, calculated by the same engine as the calculator above.

Monthly salary

Take-home pay

Wage tax (WIT)

Employee INSS (4%)

Employer INSS (6%)

Cost to the employer

$115.00

$110.40

$0.00

$4.60

$6.90

$121.90

$300.00

$288.00

$0.00

$12.00

$18.00

$318.00

$500.00

$480.00

$0.00

$20.00

$30.00

$530.00

$800.00

$738.00

$30.00

$32.00

$48.00

$848.00

$1,200.00

$1,082.00

$70.00

$48.00

$72.00

$1,272.00

$2,000.00

$1,770.00

$150.00

$80.00

$120.00

$2,120.00

$5,000.00

$4,350.00

$450.00

$200.00

$300.00

$5,300.00

A non-resident pays wage tax of 10% on the whole salary instead, from the first dollar.How the figures are worked outSix rules decide almost every ordinary month. Each one comes from the law, not from a lookup table.

Wage income tax (WIT) — A resident pays 10% of the part of the month's wages above $500, and nothing on the first $500. A non-resident pays 10% of all wages. Law 8/2008, Schedule V.

Social security (INSS) — 10% of contributory pay, with no upper limit: 4% deducted from the employee and 6% paid by the employer on top. DL 20/2017, as amended by DL 30/2021.

Allowances and overtime — Overtime and food, transport, travel and housing allowances are left out of the INSS base, but they are still wages for wage tax. A $100 food allowance on an $800 salary adds $10 of WIT and no INSS.

Tax residence — Residence is a tax test, not nationality. A resident lives in Timor-Leste 183 days or more in a 12-month period that starts or ends in the year, or is a Timor-Leste government employee posted abroad.

Small employers in 2026 — A private employer with 10 or fewer workers, at least 60% of them Timorese, and up to date with contributions pays a reduced employer share until December 2026: 5.4% instead of 6%. The calculator shows the full 6%.

Minimum wage — The national minimum wage is $115 a month, in force since 2012. It is a floor: a contract may pay more, never less. An increase has been proposed; until it is published, $115 applies.

Common questions

Is a salary of $500 or less taxed? — Not for a resident: no wage income tax is due on the first $500 of a month's wages. The employee's 4% INSS is still deducted. A non-resident pays 10% from the first dollar.

What is the INSS rate in Timor-Leste? — 10% of contributory pay: 4% deducted from the employee's salary and 6% paid by the employer on top of it.

What does an employee cost the employer? — Each month, the salary plus the employer's 6% INSS. Over the year, add the annual subsidy (13th month) of at least one month's base salary, payable by 20 December.

When are WIT and INSS paid? — For each month's payroll: the INSS remuneration statement by the 10th of the following month, the WIT return and payment by the 15th, and the INSS payment by the 20th.

Why might a payslip differ from the calculator? — A real month can include absences, sick days, bonuses, back pay or a part month. The calculator covers a plain salaried month; Xefe's full payroll handles the rest.