Explore salary structures and compensation details in Papua New Guinea
Understanding market competitive salaries in Papua New Guinea (PNG) is crucial for both employers and employees. Offering competitive compensation attracts and retains top talent, while ensuring employees receive fair value for their skills and experience.
Several factors influence what constitutes a competitive salary in PNG:
There are several resources available to help research market competitive salaries in PNG. Websites like Paylab.com provide user-submitted salary data for various positions in PNG. While self-reported data may have limitations, it offers valuable insights into current salary trends. Another resource, Salary.com, offers salary information based on job titles, locations, and company sizes. While not PNG-specific, it can provide a general benchmark for some positions.
Beyond base salary, PNG employers should consider offering a comprehensive benefits package to remain competitive. This may include health insurance, paid time off, and retirement contributions.
Papua New Guinea sets its minimum wage standards through a government body known as the Minimum Wages Board (MWB). These regulations are outlined in the Industrial Relations Act 1962.
The MWB issues determinations that set the minimum wage for various categories of workers. These determinations are legally binding and employers are required to comply.
Under the Industrial Relations Act, employers in Papua New Guinea have the following obligations regarding minimum wage:
In Papua New Guinea, labor laws mandate certain benefits for employees, but many companies offer additional perks to attract and retain talent. Here, we delve into the different types of bonuses and allowances you might encounter in PNG.
Papua New Guinea adheres to a set of mandatory benefits outlined in the national labor laws. These include:
While not mandated by law, many Papua New Guinean companies offer additional benefits to make their compensation packages more attractive. These can include:
It's important to remember that these are just examples, and the specific benefits offered will vary depending on the company, industry, and position. Always refer to the individual employment contract for a complete picture of the compensation and benefits package.
In Papua New Guinea, payroll cycle practices are influenced by both legislation and employer discretion.
The Industrial Relations Act (IRA) stipulates that full-time employees should be paid no less frequently than every two weeks (fortnightly). However, a longer pay cycle of up to one month is permissible, but only through a written agreement between the employer and employee.
While there's no official mandate for payslip issuance in Papua New Guinea, it's recommended that employers provide payslips for transparency and record-keeping purposes. These payslips should detail gross pay, deductions, and net pay delivered.
Employers are responsible for withholding income tax through the Pay As You Earn (PAYE) system and remitting it to the Internal Revenue Commission (IRC). Standard deductions for social security contributions also apply. Employers contribute 8.4% of an employee's gross salary (excluding overtime, bonuses, and commissions) towards social security, while employee contributions may vary depending on their specific scheme.
Papua New Guinea recognizes numerous public holidays. Work performed on these days typically incurs overtime pay at the employee's hourly rate. Specific regulations around public holiday pay might be outlined in individual employment contracts or collective agreements. Overtime work attracts additional pay. The rates vary depending on the day and time worked. For instance, overtime on weekdays (excluding Sundays and public holidays) is generally paid at one and a half times the regular hourly rate, while Sundays attract double the rate.
Consulting with a qualified legal or financial professional is advisable to ensure compliance with the latest Papua New Guinean employment and tax regulations.
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