What must an employer in Papua New Guinea do for Salary and Wages Tax registration?

The employer must apply to the Internal Revenue Commission within seven days after employment starts or after Salary and Wages payments exceed K277. The resulting Group Registration Number must appear on payment advices, statements of earnings and IRC correspondence.

When must an employer in Papua New Guinea pay ASF contributions?

An employer with at least 15 employees must generally participate in ASF. For an employee continuously employed for at least three months, the employee contribution is 6% of base salary and the employer contribution is 8.4%, payable within 14 days after the month ends.

What approval does an employer in Papua New Guinea need before a non-citizen starts work?

The employer or sponsor must obtain a valid work permit before the person starts and arrange the required Working Resident Employment Visa. The application commonly includes the employer's IPA evidence, organisational structure, job description, contract, qualifications, passport, police clearance and medical documents.

When must an employer in Papua New Guinea use a licensed recruitment provider?

An employment agency or labour-hire provider must hold the relevant licence, and the provider must submit monthly returns. Recorded licence fees range from K3,420 for an employment agency to K11,400 for a joint operation, subject to current charges and procedures.

What must an employer in Papua New Guinea do after a workplace injury?

The employer must maintain the required workers-compensation insurance, document the incident and cooperate with the Office of Workers Compensation. Relevant documents include WC Form 3, WC Form 11 and the Standard Medical Report.

How can an employer in Papua New Guinea handle an industrial dispute?

The employer can use dialogue and the DLIR dispute-settlement process and register the matter with the Industrial Conciliation and Arbitration Tribunal using the IR Dispute Registration Form. The Tribunal covers disputes involving private employers, public employers and the teaching service.

Employer in Papua New Guinea

An employer in Papua New Guinea hires or directs workers, pays and reports wages, provides a safe workplace and manages employment-related records and duties. Formal employer systems exist but are fragmented, while around 80% of economic activity is self-employment or informal work, especially subsistence production. A formal employer may need business registration, Salary and Wages Tax registration, employee protection arrangements, workplace safety controls and approvals for foreign workers.

Tip

Treat formal employer status in Papua New Guinea as a linked setup of business registration, payroll control, worker protection and operational compliance. Choose the lightest structure that matches your workforce and activities, but do not postpone tax registration, safety arrangements, insurance or foreign-worker approvals until after work has started. If your activity remains customary, family-based or subsistence-based, do not assume that formal employer institutions automatically apply; reassess the position when you begin hiring or formalising operations.

byAnna&Peter

A formal employer in Papua New Guinea usually operates through a company, overseas company, business name, business group or association registered with the Investment Promotion Authority (IPA). Online filing may require the name and registered office, directors, shareholders, constitution and primary activity. A foreign enterprise also needs Foreign Investor Certification. Provincial governments and urban authorities may require separate business licences. Recorded IPA fee examples are K400 for application A-1, K450 for A-2 and K150 for business-name renewal, but fees and procedures can change. The Department of Labour and Industrial Relations (DLIR) covers labour administration, industrial relations and compliance, policy, employment and international labour. It supports workplace inspections, employment services, occupational safety and health, dispute settlement and employer representation. The National Employment Division matches vacancies with workers, refers candidates and produces labour-market information. Public and private employers generally report vacancies at the beginning of the month or when a vacancy arises. An employer becomes a group employer for Salary and Wages Tax by applying to the Internal Revenue Commission (IRC). Registration is required within seven days after employment starts or after Salary and Wages payments exceed K277. The Group Registration Number belongs on payment advices, statements of earnings and IRC correspondence. The registration remains valid until the IRC cancels it in writing. An employer normally uses one registration unless the IRC accepts a reason for more than one. Recruitment through an employment agency or labour-hire provider is regulated separately. An employment agent must hold the relevant licence and submit monthly returns. Recorded fee markers are K3,420 for an employment-agency licence, K5,700 for recruitment or labour hire and K11,400 for a joint operation, each for a new licence or renewal. A missed monthly return can attract a cumulative K300 penalty. These arrangements do not remove the employer's responsibility to keep accurate staffing and payroll records. An employer sponsoring a non-citizen must obtain a valid work permit before the person starts work and arrange the required Working Resident Employment Visa. Labour authorities and the immigration authority have separate review roles. The occupation may be open, advertised or reserved; some positions require local advertising, and lower-skilled work is generally reserved for Papua New Guinean citizens. Typical documents include the IPA certificate or extract, organisational structure, job description, qualifications and curriculum vitae, signed contract, passport, police clearance, medical evidence and professional registration where required. Permit and visa fees and processing times depend on the case. For social protection, the Accident and Sickness Fund (ASF) applies to employers with at least 15 employees. For an employee who has worked continuously for at least three months, the employee contribution is 6% of base salary and the employer contribution is 8.4%. The employer pays the amounts to ASF within 14 days after the end of the month. Employers with fewer than 15 employees may participate voluntarily. The Bank of Papua New Guinea Employer Contribution Enforcement Unit can enforce the scheme, and breaches may carry criminal consequences. NASFUND is also used in employer contribution practice, so payroll staff should verify which fund and rule applies to each employee group. The employer also manages qualification and training needs. The National Apprenticeship and Trade Testing Board (NATTB), under the Apprenticeship and Trade Testing Act 1986, deals with apprenticeships and trade testing. The National Training Council (NTC) sets national training policy and standards. An employer may therefore need records for training, trade testing, human resources, payroll and compliance. The DLIR Occupational Safety and Health Programme conducts planned and demand-driven inspections. Employers may need inspection, testing, certification or registration for classified plant and equipment, dangerous goods, inflammable liquids and explosives. Trade personnel may also require testing. The Industrial Safety, Health and Welfare Act 1965 remains the stated legal basis on the DLIR materials. The Occupational Safety and Health Bill 2021 is part of reform activity and should not be treated as enacted replacement law without confirmation. For a workplace injury or death, the Office of Workers Compensation administers the Workers Compensation Act 1978, monitors compulsory workers-compensation insurance and provides technical guidance. Employers should maintain accident and claim records, cooperate with the Office and use the relevant documents, including WC Form 3, WC Form 11 and the Standard Medical Report. A reliable general deadline or premium amount is not established in the available information, so the employer should obtain the current requirement from the responsible office or insurer. Employers may form or join organisations and participate in collective bargaining. The Office of the Industrial Registrar registers and monitors industrial organisations, industrial agreements and awards, secret ballots and compliance under the Industrial Organization Act. The Employers’ Federation of Papua New Guinea represents employer interests, while the Papua New Guinea Trade Union Congress represents workers. The National Tripartite Consultative Council brings government, employers and workers together on an equal-status basis. The strength and coverage of collective bargaining vary by industry and workplace. The DLIR Industrial Relations Programme supports dialogue, settlement and enforcement. The Industrial Conciliation and Arbitration Tribunal can hear disputes involving private employers, public employers and the teaching service. An employer can register an industrial-relations dispute using the IR Dispute Registration Form. The Minimum Wages Board reviews minimum-wage policy and periodically reviews the 2014 Minimum Wage Board Determination, but no current uniform minimum-wage amount is established in the available evidence. Labour-law and policy reform remains active in 2026. A tripartite working group is reviewing the Employment Act 1978, validating the Workers Compensation Act and following up on equal-remuneration and discrimination conventions. Employers should monitor changes affecting human-resources records, workplace safety, insurance, agreements and reporting, while keeping proposed reforms separate from rules currently in force. Formal services are concentrated at the DLIR headquarters in Port Moresby, National Employment Services and provincial labour offices. Counter and case-office access can vary by time and region, and operational access is uneven outside major centres. Customary, family and subsistence work is mainly informal and may have no direct formal employer institution. The practical employer framework therefore depends on the organisation's registration status, province, workforce size, use of agents, foreign-worker arrangements, training needs, safety risks and whether workers are covered by an agreement or award.