Plain-English, profit-focused HR tips for PNG businesses and for foreign companies setting up in Papua New Guinea. Pay people right, stay compliant with PNG law, and turn your workforce into your best investment. When you're ready to stop doing it by hand, we build the HR app that does it for you.
Summary only. Confirm with the relevant authority before you rely on it.
Whether you've run a business in Lae for 20 years or you're opening your first office in Port Moresby, good HR saves money and prevents costly mistakes.
Cut wasted payroll spend, reduce staff turnover and avoid disputes that end up at the Labour Department or in court.
Get your people, permits and payroll right from day one, and build a local workforce that lowers your long-term costs.
Each tip shows the PNG rule behind it and how it helps your bottom line. Filter by topic.
The national minimum wage moves from K5.00 to K5.25 an hour on 1 January 2027, then K5.50 in 2028. Map every role near the floor and cost the change into next year's budget and customer pricing.
Minimum Wages Board determination
Overtime applies after 8 hours on a weekday, after noon on Saturday, and on Sundays and public holidays, with a 44-hour standard week. Shift starts and staggered rosters often remove most penalty hours.
Employment Act 1978, ss.48–52
The Income Tax Act 2025 replaced the 1959 Act from 1 January 2026. Employers deduct salary & wages tax and remit it to IRC by the 7th of the following month, then lodge an annual reconciliation.
Income Tax Act 2025 (IRC)
Written contracts must contain the s.14 particulars, be made in duplicate, and carry a literacy endorsement or be attested before a labour officer if the employee can't read it. Minimum age is 16.
Employment Act 1978, ss.14, 18–21
Put allegations in writing, give the employee a fair chance to respond, and consider the response before deciding. Summary dismissal is limited to the grounds in s.36(1) and must happen as soon as practicable.
Constitution s.59; Employment Act s.36
Employers contribute 8.4% and employees 6% of base salary to an approved fund such as Nasfund or Nambawan Super. Be clear in offers about what is base salary and what is an allowance.
Superannuation (General Provisions) Act 2000
Staff earn 14 days' recreation leave per year of service, and pro-rata leave is payable on termination after 6 months. Plan leave so people actually rest, rather than letting large balances build up.
Employment Act 1978, s.61
Haus krai, family duties and village obligations are part of working life in PNG. A clear compassionate leave and absence policy, applied fairly, beats unplanned walk-offs and disputes about "unauthorised absence".
Good practice
Every resignation costs recruiting time, training and lost output. Track why people leave, then fix the top two reasons: often pay transparency, supervisor quality or lack of training.
Use the turnover calculator below
Non-citizens need a work permit and an employment visa before starting work. Permits are tied to the employer, position and location, so start renewals about 3 months before expiry.
Employment of Non-Citizens Act 2007; Migration Act 1978
Work permits expect a citizen understudy and a training & localisation plan. Do it properly: each role handed to a trained PNG citizen removes expatriate housing, flights, permits and allowances.
ICSA work permit requirements
Notify the Registrar, Office of Workers' Compensation, on the prescribed form within 7 days of learning of a work injury or death. Pair it with a simple safety induction for every new starter.
Workers' Compensation Act 1978, s.42
If the contract is silent, notice runs from 1 day (under 4 weeks' service) to 4 weeks (5+ years). Notice must be equal for both sides, and pay in lieu is allowed. Write what suits your business.
Employment Act 1978, ss.34–35
Offer letters, warnings, confirmations and terminations written ad hoc create risk. Use consistent, law-aligned templates so every manager sends the same compliant message.
Try the free PNG HR Letter Writer
Most people leave a manager, not a company. A short programme on giving feedback, handling discipline fairly and recognising good work gives one of the best returns on training spend.
Good practice
The people-side checklist that should run alongside company registration. Getting the order right saves weeks of delay.
Incorporate with the Investment Promotion Authority and, if foreign-owned, obtain foreign enterprise certification. You will need the certificates for work permit and visa applications.
IPARegister with IRC for salary & wages tax under the Income Tax Act 2025. Set up monthly remittance by the 7th and the annual reconciliation.
IRCRegister with an approved fund such as Nasfund or Nambawan Super, and build 8.4% employer and 6% employee contributions into payroll.
SuperannuationAdvertise roles locally first. A labour-market test is expected before a work permit is granted to a non-citizen.
ICSA / DLIR policyLodge the work permit with the employment visa through ICSA's online sponsor portal. Include the sponsorship letter, understudy and training & localisation plan.
ICSAIssue written contracts with the s.14 particulars, in duplicate, with literacy endorsements where needed. Set notice periods, hours and leave clearly.
Employment Act 1978Arrange workers' compensation cover, run safety inductions, and know the 7-day injury reporting rule.
Workers' CompensationPair each expatriate with a citizen understudy, track training and plan the hand-over. It is a permit requirement and a long-term cost saving.
Profit leverA summary of the key rules, checked November 2026.
| National minimum wage | K5.00 / hr | From 1 Jan 2026. Rises to K5.25 from 1 Jan 2027 and K5.50 from 1 Jan 2028. | Minimum Wages Board |
|---|---|---|---|
| Superannuation | 8.4% + 6% | Employer 8.4%, employee 6% of base salary, for members of an approved fund. | Superannuation (General Provisions) Act 2000 |
| Standard hours | 44 hrs / wk | Max 12 hours a day. Overtime after 8 hours on a weekday, after noon Saturday, and on Sundays and public holidays. | Employment Act ss.48–52 |
| Recreation leave | 14 days / yr | Per year of service. Pro-rata pay on termination after 6 months. | Employment Act s.61 |
| Sick leave | 6 days / yr | After 6 months' service, accumulating to 18 days. | Employment Act s.65 |
| Maternity leave | Birth + 6 wks | Hospitalisation plus 6 weeks after birth, plus up to 4 more weeks if ill. Unpaid unless leave credits are used, with job protection and nursing breaks. | Employment Act ss.100–102 |
| Notice (contract silent) | 1 day – 4 wks | Under 4 weeks' service: 1 day. To 1 year: 1 week. 1–5 years: 2 weeks. 5+ years: 4 weeks. Pay in lieu allowed. | Employment Act ss.34–35 |
| Salary & wages tax | By the 7th | Remit to IRC monthly by the 7th of the following month, plus an annual reconciliation. | Income Tax Act 2025 |
| Injury notification | 7 days | Notify the Office of Workers' Compensation on the prescribed form. | Workers' Compensation Act s.42 |
| Work permit renewal | ~3 months | Apply about 3 months before expiry. New role or employer needs a new permit. | ICSA |
General information only, not legal, tax or financial advice. Laws, rates and procedures change, so confirm with the relevant authority or a lawyer before relying on them.
Quick estimates to help you budget. Adjust the inputs to match your business.
Base pay plus employer superannuation, with a minimum wage check for the year you choose.
Estimate only. Super is calculated on base pay. Check overtime rates against your contract or award. Excludes leave loading, housing, medical and other benefits.
What resignations cost each year, and what you save by keeping more of your people.
Replacement cost covers recruiting, induction, training and lost productivity. Set the percentage to match your own experience.
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