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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Papua New Guinea refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Pay for full-time workers must be distributed no less frequently than every two weeks. A lengthier payment period, up to one month, may be allowed by agreement between an employee and employer.

Papua New Guinea does not mandate employers to provide bonus payments to employees. It depends on the contract between the employer and the employee.

The national minimum wage in Papua New Guinea is PGK 3.50 per hour.

For an employee who is not employed on shift work, the following is considered overtime:

• all time worked in excess of eight hours on any one day other than a Saturday, Sunday, or public holiday; and
• all time worked on a Saturday after 12 noon; and
• all time worked on a Sunday or public holiday.

For an employee who is employed on shift work, the following is considered overtime:

• all time worked in excess of eight hours in any one day;
• all time worked in excess of 44 hours in any period of seven days;

Overtime compensation

on a Sunday shall be paid at twice the hourly rate, and 

on a public holiday shall be paid at the hourly rate; and 

at any time other than a Sunday or a public holiday shall be paid at one and one-half times the hourly rate.

When an employee works on Good Friday or Christmas Day, they are also entitled to overtime pay for that labor as well as time off during regular business hours that is at least equal to the time spent on those holidays. 

Papua New Guinea does not have a comprehensive data retention law.

The specific onboarding documents that need to be submitted to employers by employees on their first day of employment in Papua New Guinea may vary depending on the company and the role of the employee.

However, some of the most common documents include:

• Personal Information(Name, surname, DOB)
• Proof of identity/National Identity card
• Educational certificates
• Proof of residence
• Work Permit

Papua New Guinea Onboarding Documents:

• Personal Information(Name, surname, DOB)

• Proof of identity/National Identity card

• Educational certificates

• Proof of residence

• Work Permit

There are no statutory laws regarding probation periods in Papua New Guinea (PNG). However, most employers have a probationary period of three months for new employees.

National Holidays

• 1 January: New Year's Day
• 24 February: 'National Remembrance Day In Memory of Late Grand Chief Sir Michael Somare' day off
• 7 April: Good Friday
• 8 April: Holy Saturday
• 9 April: Easter Sunday
• 10 April: Easter Monday
• 18 April: Public Holiday
• 12 June: Queen Elizabeth II's Birthday
• 16 June : king's Birthday
• 24 July : National Remembrance Day
• 26 August: National Day of Repentance
• 15 September : Independence Day off
• 25 December : Christmas Day
• 26 December : Boxing Day

All employees are entitled to 14 consecutive days of paid annual leave for every year of service. This leave is known as recreational leave.

Employees who meet the following criteria are entitled to paid sick leave at the rate of six days per year: (a) they have worked for the employer for at least six months; (b) they are absent from work due to an illness or injury other than one that occurred as a result of or in the course of employment also sick leave may be accrued up to a total of 18 days, excluding sick leave credits for the current year.

A female employee is entitled to unpaid maternity leave Employees are eligible for maternity leave if they have worked for the employer for at least one of the following periods of time: (i) at least 108 days during a 12-month period; or (ii) at least 90 days within a six-month period, immediately before the leave was grant.

The Maternity period includes: six weeks following confinement; and

an additional four weeks if, following confinement, the employee is sick and is unable to carry out her employment. 

The following are the grounds to terminate an employment contract:

• wilful disobedience of a lawful and reasonable order
• The employee is guilty of fraud or dishonesty;
• The employee is habitually neglectful of his duties
• The employee was imprisoned for over seven days
• The employee is continually absent from his employment without leave or reasonable excuse
• is convicted of an offense or contravention of this Act or any other law relating to employment

A party to a contract of service may, at any time, give notice to the other party of his intention to terminate the contract.

The length of notice of intention required to terminate a contract of service shall be the same for both parties and shall be as specified in the contract; or shall be not less than the periods specified in Subsection.

Where there is no provision in a contract of service for notice of intention to terminate, the length of the notice shall be not less than:

• one day’s notice if the employee has been employed for less than four weeks; or 

• one week’s notice if the employee has been employed for not less than four weeks and for less than one year; or 

• two weeks’ notice if the employee has been employed for not less than one year and for less than five years; or 

• four weeks’ notice if the employee has been employed for five years or more.

An employee may terminate a contract of service without notice if the employer or a person acting or claiming to act on his behalf or with his authority:

• forced the employee to sign the contract; 

• had been convicted of an offense against the employee or his dependents;  

• had violated this Act or any other law related to the employee or his dependents,

• had been negligent or careless in the performance of his duties towards the employee or his dependents

• has failed to properly and faithfully fulfill his commitments to the employee or his dependents by engaging in an act of omission or commission.

• has mistreated.

Severance or retrenchment compensation equal to 15 days average pay for every completed year of continuous service or part thereof in excess of 6 months must be paid to a workman on termination of employment.

Your employment visa will be issued separately after your work permit application is approved and issued. You must have in your possession a valid work permit letter, Work Permit ID card and a valid Working Resident Visa before you travel to Papua New Guinea to commence work It is the responsibility of your sponsor or employer to apply for a work permit on your behalf.

Background checks are not mandatory in Papua New Guinea, but if this is a requirement of employment, an employer may legally conduct one and/or ask for a police clearance from the PNG authorities.

• Educational Background

• Employment History

• Employment Verification

• Passport Validation