Economic Overview, PNG LNG Super-Projects & Mineral Wealth
Papua New Guinea combines mega-scale LNG export terminals with world-tier gold, copper, and forestry extraction.
Key Economic Clusters
- Liquefied Natural Gas (PNG LNG & Papua LNG): Multi-billion dollar upstream gas extraction and LNG liquefaction in Port Moresby.
- Gold & Copper Mega-Mining: Lihir island open-pit gold mine and Ok Tedi copper/gold operations.
- Forestry, Coffee & Fisheries: Premium Arabica highland coffee and Pacific tuna transshipment.
Employment Contracts, Employment Act 1978 & Probation
Regulated by the Employment Act 1978.
- Written Contracts: Mandatory in English detailing remuneration, benefits, and job terms.
- Probation Period: Statutory probation is 3 months.
Working Hours, Leave & Superannuation (Nasfund 8.4% Employer)
- Standard Hours: 44 hours per week (typically 8 hours/day Monday to Friday + 4 hours on Saturday).
- Annual Leave: Minimum 14 working days (or 3 weeks) paid vacation per continuous year of service.
- Paid Sick Leave: 6 paid days per year.
- Public Holidays: ~11 official national public holidays.
- Maternity Leave: 6 weeks (42 calendar days) statutory maternity leave.
- Mandatory Superannuation: Employers contribute 8.4% and employees contribute 6.0% of basic salary (14.4% total).
IRC Salary Wages Tax (SWT) & Severance
Personal Income Tax (Salary Wages Tax): Progressive rates: 0% (up to PGK 20k/yr), 30% (PGK 20k–33k), 35% (PGK 33k–70k), 40% (PGK 70k–250k), and 42% on excess over PGK 250k/yr, remitted to IRC.
Severance Pay: Calculated based on length of service under Section 34 of the Employment Act.
Why Use an Employer of Record (EOR) in Papua New Guinea
- Rapid Energy & Mining Deployment: Onboard petroleum engineers and logistics coordinators in Port Moresby or Lae in days.
- Nasfund Superannuation & IRC Compliance: Automated management of 8.4% employer superannuation contributions and IRC Salary Wages Tax withholdings.
Hiring in Papua New Guinea? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:

