Find your employer of record in Tonga

Tonga famous place - EOR World Wide
Tonga - EOR World Wide

Tonga

currency

Tongan Pa’anga (TOP)

Currency

Payroll_Frequency

weekly

Payroll Frequency

Employer_Tax

0 to 5

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Nukualofa

Tongan Pa’anga (TOP)

DD/MM/YY

July 1st-June 30th

0 / 5 Star (0 Reviews)

Tonga famous place - EOR World Wide

Find your employer of record in Tonga

Tonga

currency

Tongan Pa’anga (TOP)

Currency

Payroll_Frequency

weekly

Payroll Frequency

Employer_Tax

0 to 5

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Nukualofa

Tongan Pa’anga (TOP)

DD/MM/YY

July 1st-June 30th

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in Tonga without a entity set up.

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Overview

Tongan Pa’anga (TOP)

CURRENCY

Nukualofa

CAPITAL

weekly

PAYROLL FRECUENCY

15

PUBLIC HOLIDAYS

0 to 5

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 Tonga

Employer

Employer Payroll Contributions

0% - 5%

National Retirement Benefit Scheme



0% - 5%

Total Employment Cost

Employee

Worker Payroll Contributions

0%- 5%

National Retirement Benefit Scheme


0% - 5%

Total Employee Cost



Employee Income Tax in Tonga

Employee Income Tax

0%

For wages of up to TOP 12,000

10%

For wages between TOP 12,001 and TOP 30,000

15%

For wages between TOP 30,001 and TOP 50,000

20%

For wages between TOP 50,001 and TOP 70,000

25%

For wages over 70,000

Tonga famous place - EOR World Wide
Tonga famous place - EOR World Wide
Minimum Wage in Tonga
General

Employment laws in Tonga do not specify a particular amount regarding minimum wage. In fact, employers and employees can negotiate salaries or base them on a collective agreement.

However, the minimum wage in Tonga usually ranges between TOP 460 and TOP 8,130 per month. But if you hire an Employer of Record in Tonga, you can get further details about salaries in this country.

$195 Minimum Wage per month

Tonga famous place - EOR World Wide

Payroll Contributions in Tonga

Payroll Cycle

In Tonga, the payroll cycle can vary depending on what the employment contract of a worker states. Therefore, the payroll cycle can be daily, weekly, bi-monthly, or monthly. In a country like Tonga, it is recommendable to require payroll outsourcing services to process a company’s payroll. And the best services provider can either be an Employer of Record or a PEO. Both can provide HR and payroll outsourcing solutions to companies that require improvement.

13th Salary

In Tonga, there are no regulations or provisions regarding the 13th-month pay.

Employee Benefit in Tonga

  • Social Security benefits.
  • Overtime pay.
  • Annual leave.
  • Public holidays.
  • Sick leave.
  • Maternity leave.
  • Retirement benefits.
  • Notice period.
  • Severance pay.

Visa and work permit in Tonga

Foreigners who desire to work in Tonga, either in the public or private sector, must obtain an Employment Visa. But in order to get this document, they must apply for it a month prior to their stay in the country. Otherwise, they may have to face penalties. On the other hand, note that this type of visa is valid for up to 2 years. But the holders can renew it after it expires.


And during the application process for this visa in Tonga, applicants must provide the following documents:


  • 2 recent passport-size photos.
  • A passport whose validity is of at least 6 months.
  • A medical report. But note that a licensed doctor must have issued it within the past 6 months.
  • It will also be necessary a national Police Clearance. However, it has to be issued within the past 3 months from the country or state of residence.
  • Lastly, the applicant must provide 2 character references that include contact details.

VAT in Tonga

In Tonga, the standard VAT rate is 15.00%. On the other hand, you can get more information about taxes in Tonga with an EOR. Besides, you can also improve your company if you get PEO services in this country.

Working Hours in Tonga
General

As per the labor law in Tonga, employees cannot work more than 8 hours per day. Besides, there is a limit of 40 working hours per week. Furthermore, these regular working hours should not take place on more than 6 days a week. In other words, employees must have at least one full day of rest every week.

Overtime

In Tonga, employers can provide overtime benefits in different ways, depending on the specifications of the employment contract. For instance, employers can calculate overtime at a 125% rate of the employee’s regular wage, multiplying it by the number of overtime hours. With an Employer of Record in Tonga, it will be easier to calculate your employees’ overtime bonuses.


On the other hand, overtime may also be built into the salary package of the worker or contained in the employment agreement. But in any case, an employee’s total working hours per week should not exceed 48 hours, including ordinary hours and overtime. However, there can be an exception in special circumstances.

Working Week

Monday to Friday.

Employee Termination in Tonga
Termination Process

If an employee decides to terminate their employment contract, they must give advance written notice to their employer. However, if the employer is the one who desires to terminate a contract, they can only proceed under these circumstances:


  • Redundancy.
  • Summary dismissal.
  • Unsatisfactory conduct and performance.
  • Misconduct.


Furthermore, the employer must provide a notice period and severance pay upon dismissal. Nonetheless, if the employer terminates a contract due to misconduct, they are not obliged to provide these benefits.

Notice Period

In Tonga, the length of the notice period can vary depending on the employee’s duration of service. For example, if an employee in Tonga worked for less than 2 years, the employer must provide one week’s notice in writing. But if the employee has served for more than 2 years, the employer must provide two weeks’ notice in writing.


On the other hand, the employment contract may also specify the notice period in some cases. Therefore, we suggest hiring a Professional Employment Organization or Employer of Record in Tonga to learn more about notice periods.

Severance Pay

Upon termination, employers must pay their employees’ remaining salaries and their accrued amounts of benefits. Besides, if an employer terminates an employee due to redundancy, the employer must provide severance pay. And it must not be less than one week’s worth of pay for each completed year of employment.


Furthermore, this severance pay must be given on top of the employee’s other entitlements, including unpaid wages and leaves. On the other hand, requesting payroll outsourcing solutions can help you calculate your employees’ severance pay in the case of contract termination.

Probation Period

Employees in Tonga shall serve a probationary period, which should not exceed the first 6 months of employment.

Employee Leaves in Tonga
Paid Time Offs

Once employees complete their first year of service, they are eligible for a paid annual leave entitlement. And they can take a maximum of 12 working days off every year of service. However, it may not be applicable to casual and piece-rate workers.


On the other hand, employers may provide a pro-rated portion as annual leave for part-time employees. But if you desire to provide your employees with the best benefits, make sure to hire an Employer of Record in Tonga.

Tonga famous place - find your EOR
Public Holidays

There are 15 national holidays throughout the year.

Vacation Holidays

There are 12 vacation holidays throughout the year.

Sick Days

For every 12 months of uninterrupted service, employees in Tonga can receive at least 10 working days of paid sick leave.

Paternity Leave

In Tonga, there are no regulations or provisions regarding paternity leave.

Paternal Leave

In Tonga, there are no regulations or provisions regarding parental leave.

Other Leave

There are no other types of leave in Tonga.

Maternity Leave in Tonga

Female workers in Tonga who are expecting a child can receive a maternity leave entitlement. And this benefit consists of 30 consecutive working days.

There are 30 leave throughout the year.

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