Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Australian Dollar
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Kiribati is an island country in the central Pacific Ocean that is formally known as the Republic of Kiribati. The permanent population is over 119,000 people, with more than half of them residing on the atoll of Tarawa. The state is made up of 32 atolls and Banaba, a elevated coral island. They cover an area of 811 square kilometers and are spread out across 3.5 million square kilometers. Although the International Date Line goes around Kiribati and swings far to the east, almost touching the 150° W meridian, their spread straddles the equator and the 180th meridian. Kiribati's easternmost islands, the southern Line Islands south of Hawaii, are now on the same day as the Gilbert Islands, putting them in the world's most advanced time zone, UTC+14. Kiribati is the only nation in the world to be located in each of the four Cardinal Hemispheres. In 1979, Kiribati declared independence from the United Kingdom and became a sovereign state. Tarawa, the capital and now the most populous city, is made up of a series of islets linked by causeways. They cover roughly half of the Tarawa atoll's surface area. Prior to independence, the country mined phosphate; however, with fisheries and copra exports driving most of the economy, those mines are no longer viable. Kiribati is one of the world's least developed nations, and its economy is heavily reliant on foreign assistance. Kiribati is a member of the Pacific Community, Commonwealth of Nations, IMF, World Bank, OACPS, and the Pacific Islands Forum, as well as a full member of the United Nations since 1999. As an island country, the islands are extremely vulnerable to climate change, and as a member of the Alliance of Small Island States, tackling climate change has become a key part of its foreign policy.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

A lawful termination of employment is subject to various requirements, one of which is that the employer must produce a written copy of any grounds for the termination. Termination is legal if an employee is unable to fulfill the job's required responsibilities to a reasonable standard of performance; if an employee engages in unacceptable workplace behavior; or if an employer's operational requirements are lessened.

Notice period

You must offer a one-week notice to any employee who has been with you for less than a year. A two-week notice time is required if you have worked for less than three years, and a four-week notice period is required if you have worked for more than five years.

Severance pay

If you the employer initiates an immediate termination, they may provide severance in lieu of notice. By the end of the next workday, the employer must pay all wages and benefits due, including any accrued but unused annual leave.

Probation period

There are no provisions in the Kiribati law regarding probationary period.

07. Working hours


Local labor laws establish a 40-hour workweek but leave weekly maximums and minimums to individual employment contracts. Employers must submit these contracts for documentation to the Ministry of Labor and Human Resources Development. In general, public sector employees work an average of 36.25 hours per week and are compensated for any additional hours worked.


At the moment, there are no laws regulating the amount of overtime that an employee may work.

08. Minimum wage


The minimum wage is AUD 1.30 per hour for employees in local businesses and companies, and AUD 3.00 for workers in overseas-funded projects.

09. Employee benefits


There are no national public or private health insurance schemes. Instead, the government provides all health services to all residents for free, resulting in little to no out-of-pocket health expenditure costs. Any medical services provided to foreign tourists and travelers are subject to a fee.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.