Talent Wiki - Tonga
Your quick guide on talent and labor compliance norms in Tonga
Capital
Nuku'alofa
Currency
Tongan paʻanga (TOP)
Languages
Tongan, English
Payroll Frequency
Daily/Weekly/Bi-monthly/Monthly
GDP per Capita
$ 5,367.24
Employer Tax
5%
Talent Overview
The Kingdom of Tonga is a polynesian archipelago located in the southern part of the Pacific Islands. Their main economic activity is agriculture and is known for exporting products such as vanilla bean, yam, squash, cocoa, coffee, and fish. Tonga is undergoing plans in developing its private sector and optimizing its agricultural production to encourage investors in the country.
Major economic hubs:
Nuku'alofa, Lapaha, Neiafu
Skills in demand:
Healthcare, Education, Sales and Marketing, IT services
Salary Data
Average monthly salaries for some job positions in Tonga are as follows;
| Job Title | Average Monthly Salary (in TOP) | Average Monthly Salary (in USD) |
| Product Engineer | 1,770 | 761.45 |
| Software Engineer | 1,790 | 770.06 |
| Data Analyst | 1,770 | 761.45 |
| User Experience Designer | 1,660 | 714.13 |
| Project Manager | 2,140 | 920.63 |
| National Sales Manager | 4,010 | 1725.10 |
| Management Accountant | 1,490 | 641 |
Employing in Tonga
The workers from the Kingdom of Tonga are protected by the country’s elaborate labor code. Employers are expected to be familiar with the regulations before looking into hiring locals in the country.
Employee Contract
Employment contracts or agreements in Tonga may either be written or verbal. It must provide details of the job roles and responsibilities and the terms & conditions of their employment. These agreements are communicated in the country’s official languages.
Probation Period
Employees in Tonga are given a probation period of not more than 6 months.
Public and Provincial Holidays
| Date | Name | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 2 -Jan | Day off for New Year’s Day | Public Holiday |
| 7 Apr | Good Friday | Public Holiday |
| 10 Apr | Easter Monday | Public Holiday |
| 25 Apr | ANZAC Day | Public Holiday |
| 4 Jun | Emancipation Day | Public Holiday |
| 5 Jun | Day off for Emancipation Day | Public Holiday |
| 4 Jul | Birthday of His Majesty King Tupou VI | Public Holiday |
| 17 Sep | Birthday of Crown Prince Tupouto’a-‘Ulukalala | Public Holiday |
| 18 Sep | Day off for Birthday of Crown Prince Tupouto’a-‘Ulukalala | Public Holiday |
| 4 Nov | Constitution Day | Public Holiday |
| 6 Nov | Day off for Constitution Day | Public Holiday |
| 4 Dec | Anniversary of the Coronation of King Tupou I | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 26 Dec | Boxing Day | Public Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 12 days | Yes |
| Sick Leave | 10 days | Yes |
| Maternity Leave | 30 days | Yes |
Payroll
Payroll Cycle
Payroll schedule for employees in Tonga varies depending on what was stated in their contract. They may be paid daily, weekly, bi-monthly or monthly.
Minimum Wage
There is no required minimum wage amount for employees in Tonga. Salary will be negotiated directly with the employer or will be based on a collective agreement.
Overtime Pay
The overtime rate may depend on what was agreed upon on the employment contract or may be calculated by multiplying 125% by the amount of overtime work performed.
Bonus
13th Month Pay
There are no regulations for a 13th month pay in Tonga.
Employee Benefits
Some of the employee benefits in Tonga includes:
- Mandatory Leaves
- Retirement Benefits
- Death Benefit
- Social Security
Taxes
Employer Payroll Tax
| Type of Contribution | Tax Rate |
| National Retirement Benefit Scheme | 5% |
Employee Payroll Tax
| Type of Contribution | Tax Rate |
| National Retirement Benefit Scheme | 5% |
Employee Income Tax
| Gross Income (TOP) | Tax Rate |
| 0 – 12,000 | 0% |
| 12,001 – 30,000 | 10% |
| 30,001 – 50,000 | 15% |
| 50,001 – 70,000 | 20% |
| 70,001 and over | 25% |
VAT
The standard VAT in Tonga is 15%
Offboarding & Termination
Termination of employment contract by the employer may occur in the following instances:
- Summary Dismissal
- Unsatisfactory performance and conduct
- Redundancy
A notice must be given to inform the employee of the decision to end the contract. In the case of termination due to misconduct, an employer is not obliged to provide a notice.
The notice period for employees in Tonga under probation is up to one week while regular employees are given up to 2 weeks.
Employers are expected to pay their employees’ remaining wages and the accrued amount of their benefits upon termination. For termination due to redundancy, an employee is entitled to one week’s worth of pay on top of their other entitlements (leaves and unpaid wages).
Visa and Immigration
Foreign workers must secure an employment visa to stay in Tonga for employment. They must apply for this visa a month prior to their stay in Tonga to prevent penalties. Employment visas are valid for up to 2 years and can be renewed thereafter.
