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Your guide to the employment landscape, working customs and local labor laws in Tonga
Capital
Nuku'alofa
Currency
Tongan paʻanga (TOP)
Languages
Tongan, English
GDP per Capita
$5,800
Employer Tax
5%
Payroll Frequency
Daily/Weekly/Bi-monthly/Monthly
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:
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 |
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.
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.
Employees in Tonga are given a probation period of not more than 6 months.
Date | Name | Type |
January 1 | New Year’s Day | National Holiday |
April 18 | Good Friday | National Holiday |
April 21 | Easter Monday | National Holiday |
April 25 | ANZAC Day | National Holiday |
June 2 | Day off for Emancipation Day | National Holiday |
July 4 | Birthday of His Majesty King Tupou VI | National Holiday |
September 17 | Birthday of Crown Prince Tupouto’a-‘Ulukalala | National Holiday |
November 3 | Day off for Constitution Day | National Holiday |
November 4 | Constitution Day | National Holiday |
December 4 | Anniversary of the Coronation of King Tupou I | National Holiday |
December 8 | Day off for Anniversary of the Coronation of King Tupou I | National Holiday |
December 25 | Christmas Day | National Holiday |
December 26 | Boxing Day | National Holiday |
Type of Leave | Time Period | Mandatory |
Annual Leave | 12 days | Yes |
Sick Leave | 10 days | Yes |
Maternity Leave | 30 days | Yes |
Leave Compliance
Public and Provincial Holidays
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.
Type of Contribution | Tax Rate |
National Retirement Benefit Scheme | 10% |
Type of Contribution | Tax Rate |
National Retirement Benefit Scheme | 5% |
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% |
The standard VAT in Tonga is 15%
There are no regulations for a 13th month pay in Tonga.
Some of the employee benefits in Tonga includes:
Termination of employment contract by the employer may occur in the following instances:
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).
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.
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