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Compensation & Benefits in PgPapua New Guinea.







Hiri Motu

Country Capital

Port Moresby


Kina (PGK)

A vital aspect of employment, at home and globally, is compensation and benefits. When you expand your business abroad, you’ll need to consider factors like minimum wage, pay schedules, and vacation days — and that’s just a start. G-P offers compensation and benefits outsourcing to support compliance during your international expansion.

Papua New Guinea Compensation Laws

When you’re handling your employees’ wages, you need to consider the compensation laws. In Papua New Guinea, the current minimum wage is K3.52 per hour. The Minimum Wages Board sets this number for the country, and it is subject to change as the Board sees fit.

The employment laws outline rules for payment schedules depending on the type of employee you need to pay. Casual employees must receive the wages once they’ve completed a day of work. Piece-rate workers receive wages when they’ve completed their piece-rate duties or every two weeks if the job takes longer than a two-week period.

Employers should pay regular employees in intervals no longer than two weeks. If the employer and worker agree, the employee can receive wages on a monthly schedule. The wages schedule should not be longer than this interval.

In a case where the employer provides food rations to their employees, they can pay at no longer than a monthly interval.

Guaranteed Benefits in Papua New Guinea

Guaranteed benefits are another essential aspect of compensation. The country’s labor laws outline a series of benefits that all employees should receive, including vacation and sick leave, maternity benefits, and public holidays.

All employees are entitled to 14 days of paid vacation leave for every year of service. Workers also receive six paid sick days each year with the presentation of a medical certificate.

Female employees earn six weeks of unpaid maternity leave after delivery. All employees are entitled to public holidays off with pay.

Papua New Guinea Benefits Management

As an employer, it’s your responsibility to meet the compensation and benefits regulations outlined in the labor laws, but you’re not limited to these minimums. Introducing more benefits to employment contracts can improve employee morale and make your vacancies more competitive in the job market.

Possible additional benefits may include:

  • Housing.
  • Holiday bonuses.
  • Incentive programs.
  • Transportation stipends.

It’s essential to be strategic with your benefits management. While providing more for your employees can encourage dedication in the workplace, you want to remain within your financial means. When you’re creating your benefits plan, you should consider what your employees want and what you can afford to provide.

At G-P, we simplify the benefits management process with our scaling packages. Our system includes a series of benefits sets, all of which incorporate the minimum requirements for compliant employment. You can add more or fewer perks according to your resources.

Our benefits packages are an ideal way to manage perks as your business grows. Keep your packages small when you first start your international business and choose more extensive plans as you expand. You’ll stay compliant while assisting your employees and keeping your budget in check.

Restrictions for Benefits and Compensation

The primary documentation for labor laws in the country is the Employment Act of 1978. This legislature, along with other amendment documents like Employment Regulations of 1980, will detail any restrictions on compensation and benefits.

Choose G-P Today

From minimum wages to sick days, you’ll need to manage a new set of compensation and benefits laws as an international employer. G-P offers the expertise you need to remain compliant in your countries of expansion. Our legal team will ensure your employees receive fair wages, while our benefits packages allow you to offer more perks as you grow.

To learn more about how we support your global expansion, reach out to us today!


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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