Employer of Record in Tonga

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in Tonga, but you do not have a registered business there, an EOR is a straightforward solution. The EOR handles all the legal and HR work, like payroll, taxes, and benefits. This means you can focus on managing your team and growing your business. For companies looking to hire in Tonga, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Tonga

Using an EOR to hire in Tonga is a simple process. Here are the basic steps:

1. You find the talent. You recruit and select the person you want to hire in Tonga.
2. The EOR hires them legally. The EOR, as a registered entity in Tonga, drafts a compliant employment contract and officially hires the employee.
3. Onboarding starts. The EOR manages the onboarding process, making sure all local requirements are met.
4. The EOR handles HR and payroll. The EOR takes care of salary payments, taxes, and social security contributions according to Tongan law.
5. You manage your employee. Your new team member works for your company, and you handle their daily tasks and projects.

Why use an Employer of Record in Tonga

Partnering with an EOR in Tonga gives you a fast and simple way to hire employees without setting up a local entity. This saves you time and money. An EOR handles the complex HR tasks and ensures you comply with Tongan labor laws.

Here are some key benefits:

• Hire without a local entity. You do not need to register a business in Tonga to hire employees there. The EOR acts as the legal employer.
• Ensure compliance. The EOR makes sure your employment contracts, payroll, and benefits all follow Tonga's Employment Relations Act and other local laws. This protects you from legal risks.
• Save time and money. Setting up a business in a new country can be expensive and take a long time. An EOR allows you to onboard new hires quickly.
• Access local expertise. EORs have staff who are experts in Tongan employment and tax laws. They manage all the details for you.
• Focus on your business. With the EOR handling HR and legal tasks, you can concentrate on growing your business and managing your team.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Tonga includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Tonga.

Hiring in Tonga offers a unique opportunity to tap into a growing market in the South Pacific. The country's expanding sectors, like tourism and telecommunications, make it an attractive place for business growth. However, before you hire, you need to understand the local employment landscape. This guide breaks down the key things you need to know, from contracts to holidays, to help you hire with confidence.

Employment contracts & must-have clauses

While you can make a verbal agreement, we strongly recommend a written employment contract in either English or Tongan. A written contract provides clarity for both you and your employee.

Your contract should include these essential clauses:

• Names: The full names of the employer and employee.
• Job Details: The job title and a clear description of the duties.
• Start Date: The official start date of employment.
• Work Location: The primary place of work.
• Working Hours: The expected hours of work.
• Pay: The salary or wage amount and how often it will be paid.
• Leave: Details on annual leave and other leave entitlements.
• Termination: The notice period required for termination.

Probation periods

In Tonga, you can include a probationary period in your employment contract to see if a new employee is a good fit.

• Duration: A probation period is typically three months but can be up to a maximum of six months.
• Termination: During the probation period, you can terminate the contract with a shorter notice period, usually one week.
• Conversion: If the employee's performance is satisfactory, their employment automatically becomes permanent after the probation period ends.

Working hours & overtime

A standard workweek in Tonga is 40 hours, typically broken down into eight-hour days.

• Overtime: If an employee works beyond the standard 40 hours, they are entitled to overtime pay.
• Weekday Overtime: The overtime rate for weekdays is typically 1.25 times the employee's regular pay.
• Sunday & Holiday Overtime: For work on Sundays and public holidays, the rate increases to 1.5 times the regular pay.

Public & regional holidays

Your employees in Tonga are entitled to paid time off for public holidays. Here are the public holidays for 2025:

Hiring contractors in Tonga

Hiring independent contractors can seem like a flexible option, but it comes with risks. You must classify workers correctly. If a worker is treated like an employee but classified as a contractor, you could face penalties for misclassification.

An Employer of Record (EOR) can help you avoid these risks. An EOR acts as the legal employer for your workers in Tonga. They handle all the legal and HR tasks, including:

• Ensuring compliant employment contracts.
• Managing payroll and taxes.
• Providing statutory benefits.

Using an EOR allows you to hire in Tonga without setting up a local entity, saving you time and money while ensuring you follow all local labor laws.

Navigating compensation and payroll in Tonga requires understanding a few key practices. Salaries are lower than in many Western countries, and there are specific rules for things like overtime and retirement contributions. For foreign companies, this can make hiring in Tonga affordable. An Employer of Record can help ensure you follow all local labor and tax laws.

Payroll cycles & wage structure

In Tonga, the payroll cycle is typically monthly, but it can also be daily, weekly, or bi-monthly as specified in the employment contract. Salaries vary based on the industry, the employee's experience, and their location. For example, workers in tourism or government jobs in urban areas tend to earn more.

Overtime & minimums

The legal work week in Tonga is 40 hours, with an 8-hour workday. If you work more than the standard hours on a weekday, you get paid 1.25 times your regular rate. For work on Sundays and public holidays, the rate increases to 1.5 times the regular pay. The minimum wage is TOP 2.00 per hour.

Employer taxes and contributions

Employers in Tonga contribute to the National Retirement Fund for their employees. This fund covers old age, disability, and survivor benefits.

Employee taxes and deductions

Employees also contribute a portion of their salary to the National Retirement Fund.

In Tonga, your approach to employee benefits and leave is built on a foundation of mandatory requirements and common practices. The law sets the minimum standards you must follow for things like paid time off and retirement contributions. Beyond these legal requirements, many companies offer additional benefits to attract and keep the best talent. Understanding both the required and the expected benefits is key to building a strong team in Tonga.

Statutory leave

Here are the legally required types of leave you need to provide your employees in Tonga.

• Annual Leave: After 12 months of continuous service, your employees are entitled to a minimum of 10 paid days off.
• Sick Leave: You should provide at least 7 paid days for sick leave each year. You can ask for a medical certificate if an employee is sick for more than a couple of days.
• Maternity Leave: Female employees are generally entitled to 6 weeks of paid maternity leave. To be eligible, they usually need to have worked for you for at least 12 months.

Public holidays & regional holidays

Your employees in Tonga are entitled to a paid day off for public holidays. If they work on a public holiday, you'll need to pay them a higher rate.

Note: Holiday dates can sometimes change. Always check the official government announcements for the most current information.

Typical supplemental benefits

To be a competitive employer, you'll want to offer more than just the basics. Here’s a look at the difference between what's required by law and what's commonly offered.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be tricky. An Employer of Record (EOR) makes it simple.

An EOR already has a full understanding of Tonga's labor laws and common practices. We handle all the details of your team's benefits and leave, making sure you are compliant with all local regulations. We can also advise you on what supplemental benefits will make your company an attractive place to work. This frees you up to focus on growing your business.

When your company and an employee part ways in Tonga, you need to follow a clear process. This involves giving the correct notice, paying any final wages and entitlements, and keeping detailed records. The main goal is to handle the exit fairly and according to the law to avoid any legal problems.

Notice periods

You must give your employees written notice before their employment ends. The amount of notice depends on how long they have worked for you.

You can also pay the employee their regular wages instead of having them work the notice period.

Severance pay

In Tonga, you may need to pay severance if you are making a role redundant or in cases of unfair dismissal. It is not typically required for employees who resign or are terminated for misconduct.

A common way to calculate severance is two weeks of basic pay for every full year the employee has worked for you. This is based on their regular salary at the time of termination, not including overtime or other allowances.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we take care of the entire offboarding process for you. We make sure that every termination is handled correctly and in compliance with Tongan law.

Here’s what we do:

• Ensure correct notice periods: We verify the employee's length of service to determine the right notice period.
• Calculate final pay: We handle the calculation of all final wages, including any unused leave and severance pay.
• Manage documentation: We prepare all necessary termination documents to keep you compliant.
• Reduce your risk: Our team of local experts understands the details of Tongan employment law, which helps protect you from legal issues.

We manage these technical details so you can focus on running your business.

Navigating the visa and work permit process in Tonga requires careful planning. If you intend to work in Tonga, you need an Employment Visa. This applies whether you are working in the public or private sector, or even doing volunteer work. The process involves your employer being registered locally and demonstrating that a Tongan national cannot fill the position.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor work permits in Tonga, provided it is a legally registered entity within the country. The Tongan government requires that the sponsoring employer be registered with the Ministry of Labour. This makes using an EOR a practical route if you don't have your own local entity.

The most common visa for foreign workers is the Temporary Work Permit. This permit is tied to your specific job and employer. If you change jobs, you will likely need to apply for a new permit.

The application process for an employment visa typically includes:

• A completed application form
• A valid passport
• Recent passport photos
• A medical report
• A police clearance certificate
• An offer of employment from a Tongan-registered business
• A letter of support from the Ministry of Labour, Commerce & Industries

Expect the process to take around one month.

Business travel compliance

For short-term business visits, you will need a Business Visa. The requirements are similar to the employment visa and include an application form, passport photos, a valid passport, a medical report, a police record, character references, and a letter of support from the Ministry of Labour, Commerce & Industries.

If you are traveling to Tonga on a visitor's visa with the intention of setting up a business, you must inform Tonga Immigration of your plans in writing beforehand. Failure to do so can result in a significant fee.

Tonga does not currently offer a specific visa for digital nomads. If you plan to work remotely from Tonga, you should consult with immigration authorities to determine the appropriate visa, as working on a visitor visa is generally not permitted.