4. Types of leave

There is no information about the types of leave for this country.
Learn more about types of leave >

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

Severance pay

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

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the working hours for this country.

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

8. Employee benefits

There is no information about the working hours for this country.

The government, together with donor funding, finances the bulk of the country's health-care system, enabling people to pay little or nothing for treatment. Because of its significant health-care funding, the country has one of the highest levels of health in the Pacific.

There are no rules governing employers' supply of private health insurance. Private insurance is not popular since most health-care services are funded by the government, but you may opt to provide it via your business.

The country's labor regulations do not include any incentives or extra perks. You have the option of providing additional benefits to your workers via employment contracts and collective bargaining.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

There is currently no information on taxation in Tonga

Individual income tax

There is currently no information on taxation in Tonga

VAT, GST and sales tax

There is currently no information on taxation in Tonga

10. VISA and work permits

There is no information about the working hours for this country.

The Tonga visa policy is intended to outline the many requirements that a foreigner must follow in order to visit the Kingdom, as well as the necessary travel papers. These procedures and documents differ depending on nationality, as do other considerations such as the desired start and finish dates of the voyage, as well as the admittance allowance (single, double, or multiple-entry).

In general, the Tonga visa policy is straightforward: foreign people from over 70 countries may enter Tonga and get a visiting visa upon arrival at the entry port. The foreigner will be able to remain for up to one month under the terms of the visa.

Nationals of non-listed countries (the more than 70 nations that do not need a visa before travel) must get a letter of authorisation or an entrance permit from the government. The document will allow you to go to Tonga.

Foreigners who want to start a new firm or create a subsidiary in any nation must apply for a business license. Non-Tongan nationals who have been offered a job or desire to work in the Kingdom of Tonga must get an employment visa.

Tonga's tourism visa policy is known for being welcoming, since individuals from more than 70 countries are free from requiring a tourist visa to visit the country. Upon arrival, these persons will be issued a guest visa.

Nationals from countries not on the list must apply for an admission permit or a letter of authorisation from the government. There are two ways to get this necessary passport for enjoying the Tongan scenery.

To travel to Tonga, everyone must have a passport that is valid for at least six months following the departure date on their Passenger Arrival Card.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

Tonga's employment compliance rules demand that contracts for work lasting two months or more be in writing. Employment contracts should incorporate any position-specific rules, such as:

Salary or hourly pay

If relevant, a start and finish date.

Annual and sick leave are available.

The policy on termination and the necessary notice.

Since joining the ILO, the nation has recognized the ILO's pillars of employment rights, including collective bargaining. When you recruit Tongan workers, you may negotiate employment conditions depending on their requirements.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Tongan Pa'anga

13.Opening a subsidiary in Tonga

There is no information about the working hours for this country.

How to set up a subsidiary

The first step in establishing a subsidiary is to reserve your business name with the Business Registries Office. Your name must be distinct, and your reservation will be valid for 20 days. If you do not complete your incorporation within those 20 days, you must re-reserve your name.

Then, in order to acquire your certificate, you must file for incorporation with the Business Registries Office. You must name your directors, shareholders, and secretaries for this application, as well as provide a physical address for doing business.

You may apply for a business license at the Ministry of Labor, Commerce, and Industries after your incorporation is complete. While you will not be required to renew this license on an annual basis, you will be required to submit a notice for ongoing operation every year you operate.

If you are not a subject in Tonga and possess more than 25% of the entity's voting shares, you must additionally apply for a foreign investor license. This license must be obtained from the Ministry of Labor, Commerce, and Industries.

You may register for consumption and income tax when you've filed for incorporation and the necessary permits. Registration for consumption tax is only required if your yearly revenue exceeds 100,000 Tongan paanga (). You may manage these registration requirements by contacting the Ministry of Revenue and Customs.

Subsidiary laws

The needed business constitution is one of the country's major subsidiary laws. This formal document, which defines your entity's rules and operational procedures, must be submitted with your application for incorporation. The Companies Act of 1995 specifies the issues you must include in your constitution, such as the powers of your directors and shareholders.

At least one director, shareholder, and secretary must be appointed to your subsidiary. There are no laws governing these posts' nationality or legal citizenship.

13. Why choose Rivermate as your Employer of Record / PEO in Tonga

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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