Guide to employment, payroll and benefits in

Tonga

Rivermate offers complete payroll, benefits and compliance services for

Tonga

01. Overview

Last updated: 

August 19, 2021

Currency
Tongan Pa'anga
Capital
Nuku'alofa
Ease of doing business
61.4
Language
English
Population
105695
GDP growth
2.70%

02. Grow your team in

Tonga

with Rivermate

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

Tonga

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

Tonga

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

Tonga, officially known as the Kingdom of Tonga, is a Polynesian nation that also includes an archipelago of 169 islands, 36 of which are inhabited. The archipelago spans 700,000 square kilometers of the southern Pacific Ocean, with a total surface area of around 750 square kilometers. Tonga had a population of 100,651 people in 2016, with 70% of them living on Tongatapu, the main island. Tonga is approximately 800 kilometers long in a north–south direction. It is bordered on the northwest by Fiji and Wallis and Futuna, on the northeast by Samoa, on the west by New Caledonia and Vanuatu, on the east by Niue, and on the southwest by Kermadec. Tonga is located approximately 1,800 kilometers north of New Zealand's North Island. Tonga was a British safe state from 1900 to 1970. Under a Treaty of Friendship, the United Kingdom looked after Tonga's foreign relations, but Tonga never relinquished its sovereignty to any foreign power. After legislative changes paved the way for its first partial democratic elections in 2010, Tonga took a decisive step away from its conventional absolute monarchy and toward becoming a fully functional constitutional monarchy.

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

The Ombudsman may fire an employee at any time during the probationary period for violating any applicable law, rule, instruction, process, or authorized directive. If an employee's role becomes surplus to the Office's requirements, their employment may be terminated due to redundancy. The employee of the Office may be discharged for major offenses and serious violations of discipline, such as poor performance, undesirable behavior, or illness and incapacity.

Notice period

The employment contract specifies the notice period.

Severance pay

The Ombudsman's Office is responsible for determining the amount of severance pay that terminated employees are entitled to.

Probation period

All new employees shall serve a six-month probationary period.

07. Working hours

General

Tonga's 2020 Employment Relations Bill establishes a daily work limit of eight hours and a weekly work limit of forty hours. Each week, workers are entitled to at least one full day of rest.

After one year of employment, employees are entitled to 12 days of paid annual leave in addition to their regular working hours. Employers must allow employees to take all of their annual leave in a single period, or in two or more periods, with at least one period lasting at least one week.

Overtime

Overtime is permitted and compensated at a rate of 125 percent of the regular wage of the employee. Except in exceptional circumstances, the total time worked in any given week cannot exceed 48 hours, including regular and overtime hours.

08. Minimum wage

General

Salaries in Tonga range from 460 TOP per month to 8,130 TOP per month.

09. Employee benefits

General

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

Establishing an entity in

Tonga

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

Tonga

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

Tonga

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

Tonga

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

Tonga

via our Employer of Record / PEO solution.

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