---
title: "Papua New Guinea"
id: "17169"
type: "global-payroll"
slug: "papua-new-guinea"
published_at: "2025-09-29T12:39:29+00:00"
modified_at: "2026-10-09T14:33:05+00:00"
url: "https://topsourceworldwide.com/global-payroll/papua-new-guinea/"
markdown_url: "https://topsourceworldwide.com/global-payroll/papua-new-guinea.md"
taxonomy_continent:
  - "Oceania"
---

# Payroll Services in Papua New Guinea

Fully managed Papua New Guinea payroll: salary or wages tax withheld under the new Income Tax Act 2025, superannuation paid to your fund on time, and a named specialist a phone call away.

[Get in touch](https://topsourceworldwide.com/contact-us/)

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[Read reviews](#testimonials)

## What payroll in Papua New Guinea actually involves

Payroll in Papua New Guinea rests on two deductions: salary or wages tax, assessed per fortnight, and superannuation. A new Income Tax Act has applied since 1 January 2026, and the minimum wage rose to K5.00 an hour the same day.

### Salary or wages tax

Employers withhold salary or wages tax from every pay. Residents pay nothing on the first K770 of each fortnight, K20,000 a year, then 30% to 42%. Non-residents pay 22% from the first kina.

### Superannuation at 8.4% and 6%

Employers with 15 or more employees pay 8.4% of base salary to an authorised fund and deduct 6% from the employee, for PNG citizens with three months of service.

### A new Income Tax Act

The Income Tax Act 2025 replaced the 1959 Act on 1 January 2026. Rates and thresholds for employment income did not change, but salary packaging is now capped at 40% of the package.

### Due by the 7th

Salary or wages tax is paid with a withholding return by the 7th of the following month, and superannuation within 14 days of month end. The annual withholding statement is due by 31 March.

### Minimum wage of K5.00

The national minimum wage rose from K3.50 to K5.00 an hour on 1 January 2026, the first increase in almost a decade, and is set to reach K5.25 in 2027 and K5.50 in 2028.

## Our Partners Globally

## Calculate Your Employee Costs in Papua New Guinea

Enter a gross annual salary to see the employer’s statutory cost in Papua New Guinea for 2026: 8.4% superannuation on base salary, compulsory for employers with 15 or more employees.

##### Employment Cost Calculator

*Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/)

##### Papua New Guinea

  Annually Monthly

|  | British Pound | Papua New Guinea |
| --- | --- | --- |
| Base Salary (per month) |  |  |
| Employer Contributions |  |  |
| Total Cost (Annual) |  |  |
| Total Cost (Monthly) |  |  |

Employer of Record services in [Learn more](#)
Payroll Outsourcing in [Learn more](#)

## Know your Papua New Guinea hiring costs before you commit

Tell us the role and the salary. We’ll send back the full employer cost and the employee’s net pay after salary or wages tax and superannuation within one business day.

[Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/)

> “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”

Director of Research Operations,

> “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”

Chief Human Resources Officer,

> “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”

Senior Manager, Human Resources ,

## Employer Costs in Papua New Guinea Explained

Papua New Guinea has no social security system, so the employer’s statutory cost is the 8.4% superannuation contribution, and only once you have 15 employees. Salary or wages tax and the employee’s 6% come out of pay. Here’s the breakdown.

#### Salary or wages tax under the Income Tax Act 2025

Salary or wages tax is withheld by the employer and is a final tax for employees with no other income, so most never file a return. It is assessed per fortnight, whatever the pay period: residents pay 0% on the first K770, 30% up to K1,270, 35% up to K2,693, 40% up to K9,615 and 42% above, in line with annual bands of K20,000, K33,000, K70,000 and K250,000.

Non-residents pay 22% on the first K770 a fortnight and the same rates above it. Residents with dependants get a tax credit of up to K1,050 a year. The Income Tax Act 2025 took effect on 1 January 2026 and replaced the 1959 Act. It kept these rates and thresholds, but salary packaging benefits are now capped at 40% of the total package and need the Commissioner General’s prior approval.

#### Superannuation contributions

Under the Superannuation (General Provisions) Act 2000, an employer with 15 or more employees contributes 8.4% of each employee’s base salary to an authorised superannuation fund and deducts 6% from the employee, once the employee has been continuously employed for three months. Base salary excludes overtime, bonuses and commission.

Membership is compulsory for PNG citizens and voluntary for foreign employees, and smaller employers can join voluntarily at the same rates. Contributions are due within 14 days of the end of each month. The Bank of Papua New Guinea enforces the rules, and failing to pay is an offence that carries a fine of up to K500,000.

#### Minimum wage, working hours and overtime

The national minimum wage is K5.00 an hour from 1 January 2026 under Minimum Wages Board Determination No. 1 of 2025, up from K3.50, and rises to K5.25 in January 2027 and K5.50 in January 2028. On the 44-hour week the Employment Act uses to calculate overtime, that is K220 a week and K440 a fortnight.

The Employment Act 1978 treats as overtime any time over eight hours on a weekday, Saturday work after noon and all work on Sundays and public holidays. Overtime is paid at time and a half and Sunday work at double time, and work on a public holiday earns the normal day’s pay plus the hourly rate for the hours worked. No one may be required to work more than 12 hours a day, and employees get at least 24 consecutive hours of rest each week.

#### What a Papua New Guinea employee actually costs

For a resident employee earning K3,000 a fortnight, about K78,000 a year, an employer with 15 or more staff adds K252 of superannuation: a fortnightly cost of K3,252, or 8.4% on top of salary. Below 15 employees the statutory cost is the salary itself, because there is no employer payroll tax.

The employee pays K770.85 of salary or wages tax and K180 of superannuation and takes home K2,049.15, before any dependant credit. Wages are paid at least every two weeks, or monthly by agreement.

#### Leave, notice and termination

Employees earn 14 consecutive days of paid recreation leave for each year of continuous service, and anyone leaving after at least six months is paid one day for each completed month. After six months of service, employees with a medical certificate get six days of paid sick leave a year, which can build up to 18 days.

Women who have worked 108 days in the past 12 months, or 90 days in the past six, are entitled to maternity leave for any hospital stay before the birth and six weeks after it, plus up to four more weeks if they are ill. It is unpaid unless they convert recreation or sick leave credits, and nursing mothers get two paid half-hour breaks a day. Without a notice clause in the contract, notice is one day in the first four weeks, one week up to a year, two weeks up to five years and four weeks after that, the same for both sides.

## Papua New Guinea payroll tax and superannuation, 2026

| Item | Employer | Employee | Applies to |
| --- | --- | --- | --- |
| Superannuation | 8.4% | 6% | Base salary, employers with 15 or more employees, PNG citizens |
| Salary or wages tax, residents | — | 0% to 42% | Tax-free up to K770 a fortnight, K20,000 a year |
| Salary or wages tax, non-residents | — | 22% to 42% | 22% from the first kina |
| Dependant tax credit | — | Up to K1,050 a year | Residents with up to three dependants |
| Social security tax | None | None | No state social security scheme |
| Salary or wages tax deadline | 7th of the next month | — | Withholding return and payment |
| Superannuation deadline | 14 days after month end | — | Paid to an authorised superannuation fund |

### Salary or wages tax per fortnight from 1 January 2026

| Fortnightly income | Residents | Non-residents |
| --- | --- | --- |
| Up to K770 | 0% | 22% |
| K770 to K1,270 | 30% | 30% |
| K1,270 to K2,693 | 35% | 35% |
| K2,693 to K9,615 | 40% | 40% |
| Above K9,615 | 42% | 42% |

### Gross to net and employer cost in Papua New Guinea, per fortnight

| Fortnightly gross | Employee deductions | Net pay | Employer superannuation | Total fortnightly cost |
| --- | --- | --- | --- | --- |
| K1,500 | K320.50 | K1,179.50 | K126.00 | K1,626.00 |
| K3,000 | K950.85 | K2,049.15 | K252.00 | K3,252.00 |
| K6,000 | K2,330.85 | K3,669.15 | K504.00 | K6,504.00 |

The gross-to-net table assumes a resident employee with no dependants, paid fortnightly, whose employer has 15 or more employees. Employee deductions are salary or wages tax and the 6% superannuation contribution. These are TopSource calculations from the verified rates.

Rates, thresholds and amounts shown were verified on 9 October 2026 against the Income Tax Act 2025 (Schedule 1 and its withholding provisions), the Superannuation (General Provisions) Act 2000 and the Bank of Papua New Guinea’s notice on superannuation contributions, the Employment Act 1978 and Minimum Wages Board Determination No. 1 of 2025. This page is general information, not tax or legal advice.

[Get a Custom Payroll Quote](https://topsourceworldwide.com/contact-us/)

## How our Papua New Guinea payroll service works

1. Map your setup

We confirm your registrations with the Internal Revenue Commission and your authorised superannuation fund, and the contract terms that set pay periods, notice and benefits.

2. Migrate or onboard

New hires are set up for salary or wages tax from their first pay and for superannuation once they reach three months of service. Year-to-date pay, leave balances and service dates are carried across.

3. Run and review

Each pay period you receive a payroll report for approval before anything is paid: gross to net per employee and every salary or wages tax and superannuation line, with variances explained. Nothing is paid until you approve it.

4. File and pay

We pay salaries, issue payslips, file the withholding return and pay salary or wages tax by the 7th, pay superannuation within 14 days of month end and file the annual withholding statement by 31 March.

5. Stay current

The minimum wage rises again in January 2027 and 2028, and superannuation funds are pressing to extend compulsory super to smaller employers. We apply each change as it takes effect and re-verify the figures on this page.

## Why Choose TopSource for Global Payroll in Papua New Guinea

TopSource for payroll, Employer of Record or any other of our services represents a simpler, more reliable and transparent option.

We don’t hide fees or sneak price increases. We run Papua New Guinea payroll in-house and file under your own Internal Revenue Commission and superannuation fund registrations rather than a bureau’s, so the same team that pays your salary or wages tax answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, contributions and fees, and one live Portico view of Papua New Guinea beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified.

[Global Payroll](https://topsourceworldwide.com/global-payroll/)
[Get Started](https://topsourceworldwide.com/contact-us/)

## Other services Accelerating your growth in Papua New Guinea and beyond

#### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.

### Global Employer of Record (EOR) services

With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion.

### Actionable HR Advisory

On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking.

### Global entity management

Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business.

### Accounting

We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction.

## Meet our experts for Papua New Guinea

Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.

[Our People](https://topsourceworldwide.com/our-people/)

## Beyond a payroll service **A globalization accelerator**

A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth.

- [Payroll platform](#)
- [Audit](#)
- [Intelligence](#)
- [Advisory](#)

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##### Audit

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##### Intelligence

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Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits.

##### Advisory

###### Expert guidance that turns complexity into clarity.

Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion.

## Papua New Guinea payroll FAQs

### What are employer payroll contributions in Papua New Guinea in 2026?

Only superannuation: employers with 15 or more employees pay 8.4% of base salary for PNG citizens with three months of service and deduct 6% from the employee. There is no social security tax or payroll levy on the employer.

### How is salary or wages tax calculated in Papua New Guinea?

It is assessed per fortnight. Residents pay 0% on the first K770, then 30%, 35%, 40% and 42%, in line with annual bands of K20,000, K33,000, K70,000 and K250,000. Non-residents pay 22% on the first K770. The employer withholds it as a final tax.

### What changed with the Income Tax Act 2025?

It replaced the Income Tax Act 1959 on 1 January 2026. The rates and thresholds for employment income stayed the same, but salary packaging is capped at 40% of the package with prior approval, and some benefits, such as company cars, are valued differently.

### What is the minimum wage in Papua New Guinea?

K5.00 an hour since 1 January 2026, up from K3.50, under Minimum Wages Board Determination No. 1 of 2025. It is set to rise to K5.25 in January 2027 and K5.50 in January 2028.

### When is salary or wages tax due in Papua New Guinea?

By the 7th of the month after the month in which the salary was paid, with the withholding return. Employers also file an annual withholding tax statement within three months of the end of the year, by 31 March.

### Is superannuation compulsory in Papua New Guinea?

For employers with 15 or more employees, yes: they pay 8.4% of base salary and deduct 6% for each PNG citizen employee with three months of service, within 14 days of month end. Smaller employers and foreign employees can contribute voluntarily.

### How much does it cost to employ someone in Papua New Guinea?

An employee on K3,000 a fortnight costs K3,252 with superannuation, 8.4% on top of pay, and takes home K2,049.15 after tax and super. Tell us the role and salary and we’ll send the full cost within one business day.

### How much leave do employees get in Papua New Guinea?

At least 14 consecutive days of paid recreation leave for each year of continuous service, plus six days of paid sick leave a year after six months of service, with a medical certificate.

### What notice period applies in Papua New Guinea?

Without a notice clause, the Employment Act 1978 requires one day in the first four weeks, one week up to a year, two weeks up to five years and four weeks after that, the same for employer and employee.

### Can a foreign company run payroll in Papua New Guinea without an entity?

Employers register with the Internal Revenue Commission and an authorised superannuation fund, which in practice requires a local company or branch. TopSource can run payroll for your Papua New Guinea entity or employ your team through our Employer of Record service.

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[Mauritania Capital: Nouakchott Currency: Mauritanian Ouguiya](https://topsourceworldwide.com/global-payroll/mauritania/)

[Mauritius Capital: Port Louis Currency: Mauritian Rupee](https://topsourceworldwide.com/global-payroll/mauritius/)

[Monaco Capital: Monaco Currency: Euro](https://topsourceworldwide.com/global-payroll/monaco/)

[Mongolia Capital: Ulaanbaatar Currency: Tögrög](https://topsourceworldwide.com/global-payroll/mongolia/)

[Montenegro Capital: Podgorica Currency: Euro](https://topsourceworldwide.com/global-payroll/montenegro/)

[Morocco Capital: Rabat Currency: Moroccan Dirham](https://topsourceworldwide.com/global-payroll/morocco/)

[Mozambique Capital: Maputo Currency: Mozambique metical](https://topsourceworldwide.com/global-payroll/mozambique/)

[Namibia Capital: Windhoek Currency: Namibian Dollar](https://topsourceworldwide.com/global-payroll/namibia/)

[Nepal Capital: Kathmandu Currency: Rupee](https://topsourceworldwide.com/global-payroll/nepal/)

[New Zealand Capital: Wellington Currency: New Zealand Dollar](https://topsourceworldwide.com/global-payroll/new-zealand/)

[Nicaragua Capital: Managua Currency: Nicaraguan córdoba](https://topsourceworldwide.com/global-payroll/nicaragua/)

[Nigeria Capital: Abuja Currency: Nigerian Naira](https://topsourceworldwide.com/global-payroll/nigeria/)

[Norway Capital: Oslo Currency: Norwegian krone](https://topsourceworldwide.com/global-payroll/norway/)

[Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/)

[Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/)

[Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/)

[Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/global-payroll/papua-new-guinea/)

[Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/)

[Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/)

[Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/)

[Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/)

[Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/)

[Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/)

[Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/)

[Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/)

[Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/)

[Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/)

[Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/)

[Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/)

[Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/)

[San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/global-payroll/san-marino/)

[Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/)

[Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/)

[Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/)

[Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/)

[Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/)

[Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/)

[Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/global-payroll/solomon-island/)

[South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/)

[South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/global-payroll/south-sudan/)

[Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/)

[Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/)

[Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/)

[Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/)

[Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/)

[Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/)

[Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/)

[Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/)

[US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/)

[Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/)

[Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/)

[Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/)

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