Papua New Guinea

In Papua New Guinea, labor laws dictate a set of benefits that employers are obligated to provide to their employees. These benefits aim to ensure employee well-being and fair compensation.

Paid Leave

• Annual Leave: Employees are entitled to 14 consecutive days of paid annual leave, also known as recreational leave, for every year of service. This leave allows employees to take time off for rest and relaxation.

• Sick Leave: Employees who have worked for a company for at least six months are entitled to six days of paid sick leave per year, provided they present a medical certificate. Sick leave can be accrued up to a maximum of 18 days, excluding the current year's allocation.

• Maternity Leave: Female employees are eligible for six weeks of unpaid maternity leave after childbirth.

• Public Holidays: All employees are entitled to paid time off on national public holidays.

Other Mandatory Benefits

• Notice Period: Both employers and employees are required to provide a notice period before termination of employment. The notice period varies depending on the length of service.

• Overtime Pay: Employees who work beyond their standard working hours are entitled to overtime pay at a rate mandated by law.

• Social Security Benefits: Papua New Guinea has a social security system that provides certain benefits to employees. Employers are required to contribute to this system on behalf of their employees.

In Papua New Guinea, employers often provide optional benefits to attract and retain talent. Here's a look at some commonly provided perks:

Private Health Insurance Coverage

Although not mandatory, some employers provide private health insurance plans to their employees. This can be a valuable benefit, as it helps employees manage healthcare costs beyond what the public system offers.

Additional Paid Time Off

While Papua New Guinea mandates minimum leave entitlements, including annual leave, sick leave, and public holidays, employers may offer additional paid time off as a benefit. This could include extended vacation days, personal leave days, or compassionate leave.

Flexible Work Arrangements

Employers may offer flexible work options, such as telecommuting or compressed workweeks, to enhance work-life balance for employees.

Housing Allowances

In some cases, employers might provide housing allowances or subsidies to help employees with housing costs, particularly in expensive areas.

Educational Assistance

To support employee development, some employers may offer tuition reimbursement or educational assistance programs.

In Papua New Guinea, there is no legal obligation for employers to provide health insurance for their employees. The country primarily depends on a public healthcare system established through the National Health Plan of 2011. However, this system may not always fully cater to individual needs.

Employer-provided health insurance

Employers in Papua New Guinea are not legally required to offer health insurance as part of an employee's compensation package. However, some employers may opt to provide health insurance as a means to attract and retain talent. This can be a significant advantage, as private health insurance can assist employees in managing medical costs.

Private health insurance

Private health insurance plans are available in Papua New Guinea from various insurance providers. If health insurance isn't provided by the employer, employees have the option to obtain individual coverage directly from a private insurer.

Papua New Guinea's retirement landscape is evolving, with a mix of formal and informal saving mechanisms. Here's a breakdown of the available options for employees:

Superannuation (Super) Funds

The primary formal saving option is voluntary contributions to authorized superannuation funds. These regulated funds allow employees and employers (if offered as a benefit) to contribute towards a retirement nest egg.

Customary Land and Resources

Traditionally, extended families and reliance on land ownership have played a significant role in supporting individuals after retirement.

Future Developments

Discussions and proposals for establishing a national retirement benefits scheme have been ongoing. However, there's no concrete timeline for implementation as of April 2024.