Find your employer of record in Papua New Guinea
Papua New Guinea
Kina (PGK)
Currency
twoweekly
Payroll Frequency
0 to 8.4
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Papua New Guinea without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Port Moresby
Kina (PGK)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Papua New Guinea
Papua New Guinea
Kina (PGK)
Currency
twoweekly
Payroll Frequency
0 to 8.4
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
Port Moresby
Kina (PGK)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Papua New Guinea without a entity set up.
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Overview
Kina (PGK)
CURRENCY
Port Moresby
CAPITAL
twoweekly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 8.4
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Papua New Guinea
Payroll Contributions in Papua New Guinea
Payroll Cycle
The payroll cycle for PNG citizens is generally every two weeks. Nonetheless, for non-residents, you can arrange a monthly payment. Thus, it is helpful to count on payroll outsourcing services.
13th Salary
There are no provisions in Papua New Guinea regarding a 13th-month salary pay. So, if you want to add a bonus to your employment offer, you can contact an Employer of record in Papua New Guinea.
Employee Benefit in Papua New Guinea
An employee in Papua New Guinea shall receive the following benefits:
- Annual leave.
- Sick leave.
- Public holidays.
- Maternity leave.
- Notice period.
Furthermore, with an employer of record, you can better manage the employment benefits.
Visa and work permit in Papua New Guinea
Foreign individuals that want to work in Papua New Guinea must obtain an employment visa first.
Therefore, concerning eligibility, it varies depending on the period and purpose, as well as the personal circumstances of the individual.
But before applying for the employment visa, it is required to apply for a work permit at the Department of Labour and Industrial Relations.
Thus, after the work permit application, the individual has to submit an entry permit application at the PNGICA.
So, once the individual has met the requirements, the employment visa will be issued for a specific validity that will vary depending on the individual circumstances.
VAT in Papua New Guinea
The standard VAT rate in Papua New Guinea is 10% for goods and services.
Working Hours in Papua New Guinea
General
Generally, employees in Papua New Guinea work 8 hours per day from Monday to Friday and 4 hours on Saturdays. Thus, the total working hours per week is 44.
Overtime
Employees can work overtime upon request from the employer. But it cannot be more than 4 hours of overtime.
Moreover, the employer has to comply with the following compensation rates:
- Twice the hourly rate on Sundays, for instance.
- Hourly rate on public holidays.
- For instance, one and a half times the hourly rate on weekdays.
Furthermore, according to employment laws, employees cannot work more than 12 hours per day, including standard hours and overtime.
So, if you want to have outstanding management of overtime, you need an Employer of record in Papua New Guinea.
Working Week
The working week in Papua New Guinea is generally from Monday to Friday, and half-day on Saturday.
So, with HR and payroll outsourcing you can manage the work week excellently. For this reason, it is your best option.
Employee Termination in Papua New Guinea
Termination Process
In Papua New Guinea, a contract for a specified duration terminates once it has reached the end date.
Whereas a contract for an unspecified duration terminates once any of the parties decides to terminate it.
However, any of the parties that decide to terminate the contract has to comply with the notice period. Since contract termination may be overwhelming, you can rely on an EOR.
Notice Period
Concerning the notice period, its length has to be specified in the employment contract. In case there is not stated in the contract, the notice period shall be the following:
- Less than 4 weeks of service: one day’s notice.
- 4 weeks of service to 1 year of service: one week’s notice.
- 1 to 5 years of service: two weeks’ notice.
- More than 5 years of service: four weeks’ notice.
So, with an Employer of record in Papua New Guinea you can ensure better management of this matter.
Severance Pay
There are no provisions regarding severance pay in Papua New Guinea.
However, if any of the parties does not want to comply with the notice period, they have to pay the other party the sum that corresponds to the amount of salary of the notice period.
Although there are no provisions regarding severance pay, you can always look for payroll outsourcing to help you with this issue.
Probation Period
The Papua New Guinea labour law does not have any provisions regarding the probation period. Furthermore, with a PEO, you can better define this matter.
Employee Leaves in Papua New Guinea
Paid Time Offs
Employees in Papua New Guinea can take a 14-day paid annual leave. However, this is only for those employees that are not engaged on a casual basis.
So, if you want to manage employment leaves excellently, you need a Professional employment organization.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 14 vacation holidays throughout the year.
Sick Days
According to employment laws, employees can request a 6-day sick leave for each year. But, as long as they have complied with six months of service.
Paternity Leave
There are no provisions in Papua New Guinea regarding paternity leave.
Maternity Leave in Papua New Guinea
In Papua New Guinea, a female employee can request an unpaid maternity leave for the following period:
- The necessary period for hospitalization before delivery.
- Then, after delivery, she can request 6 weeks of unpaid maternity leave.
However, the employee can only get this benefit once she has completed 180 days of service for 12 months or 90 days of service for 6 months. Since handling leaves can be complex, you can look for PEO services to delegate it.
There are 42 leave throughout the year.
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