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Payroll in Papua New Guinea

Payroll in Papua New Guinea runs in PGK on a fortnightly or monthly payroll cycles are both common in practice. cycle, with statutory employer contributions and no statutory 13th-month bonus is mandated.. Gracemark operates it end-to-end, humans, not tickets.

Currency
PGK, Papua New Guinean kina
Payroll cycle
Fortnightly or monthly payroll cycles are both common in practice.
Working week
Standard working hours are set under the Employment Act 1978, generally around 44 hours per week, with overtime provisions applying to eligible workers.
Minimum wage
The national minimum wage rose to PGK 5.00 per hour effective 1 January 2026, with a further increase to PGK 5.25 later in the year, following the Minimum Wage Board's 2025 determination [2](https://www.thenational.com.pg/new-minimum-wage-gazetted-to-take-effect-in-january/).
13th-month
No statutory 13th-month bonus is mandated.
Employer cost
PNG has no general social security tax; the main mandatory employer cost is superannuation contribution of 8.4% of gross salary, required for employers with 15 or more employees [1](https://www.globalexpansion.com/countrypedia/papua-new-guinea).
Probation
Probation periods are commonly up to 3 months by contract or practice.
Notice period
Notice periods scale with length of service under the Employment Act, and severance obligations may apply depending on grounds for termination and contract terms.

Two ways to run payroll in Papua New Guinea

Own-entity payroll

For long-term presence in Papua New Guinea. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Melanesia time.

EOR-run payroll

No entity in Papua New Guinea? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.

Compliance essentials in Papua New Guinea

  • Employment model: EOR vs. contractor vs. local entity for Papua New Guinea
  • Mandatory benefits, social contributions and any 13th-month obligation
  • Termination rules, statutory notice and severance exposure
  • Contractor misclassification risk and how local law defines employment
  • Currency (PGK), payroll cycle and English-language contract requirements

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Deeper guide
Hiring guide: Papua New Guinea β†’
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