Deduction Service

 Payroll Deduction Services

Brief Background

The Department of Finance and Treasury (DoFT) has been providing third party services to government employees and business entities towards employees’ personal financial needs – generally by discharging their consents via the government payroll system. In nature, it involves direct deductions from the government employee wages to the beneficiaries’ (Business Institutions) bank accounts.

Up from November, 2017, this service was tailored in such a way that it was formally organized so that both parties were protected by way of legal arrangements, etc. Thus, a few institutions started off with this formality. But over the years, as the number of employees increased, the needs of the employees eventually diversified so as to meet their needs/livelihoods. Hence, the need to bring on board more institutions to this service.

From our experience, the different institutions that have been recognized are:

  1. Micro-Financiers
  2. Commercial Banks
  3. Other Instiutions

1. Micro-Financiers

These are individuals/entities operating as sole proprietorship and offering financial services. But are not registered as banks. And offer loans/advances up to 3 months.

2. Commerical Banks

 These are entities that are duly registered under the Reserve Bank of Vanuatu Act and offer loans/advances of more than 3 months. And their requirements are standardized and rigorous.

3. Other Institutions

These are non-commercial banks, privately owned businesses registered as cooperative schemes, savings and loans schemes by political groups and organisations involving public servants. Some these, include, Vanuatu National Provident Fund and Computer World.


The Department of Finance & Treasury, recongizing how these entitties play an important/significant role in aiding employees to meet their needs, is now expanding this service in a way that all institution that are interested in this service are most welcome to register. However, all that are interested to register should adhere to these requirements:

  1. Should have a valid Business License;
  2. Should have a valid Vanuatu Financial Services Certificate;
  3. Should have a Bank Confirmation detailing the entitie's banking details;
  4. Should have a FIU Clearance/Certification;
  5. Should have completed the required application form i.e. both soft copy and hard copy. The hard copy should be signed by the applicant; The application form can be download from here.

Please, do note, that the Department of Finance & Treasury, reserves the right to amend these requirements depending on future circumstance if any may arise. However, will make every effort to disseminate any changes as they arise.

Confirmation of registration

The Department of Finance & Treasury shall notify each applicant the status of his/her application and, with due diligence , complete the registration process within 1 month of receiving an application. If there is any delay in the process, please do not hesitate to contact us by email: This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone: 24543.