Kiribati is an ideal outsourcing destination due to its cost-effective labor and highly skilled workforce. Companies that wish to hire workers in the country may wonder, what is the average salary in Kiribati? This information will help them prepare a payroll budget. 

The average monthly salary in Kiribati is 579 Australian dollars (AUD), or about USD 364. However, wages are impacted by experience, education, location, position, and industry. Comparing Kiribati salaries to wages around the world also provides more perspective. 

This guide will explore all factors involved in Kiribati wage determination to provide the information you need to start hiring.

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What is the Average Salary in Kiribati?

Kiribati’s average salary is 579 AUD, or around $364. The country’s low wages are due to its small, underdeveloped economy, mainly relying on foreign aid. The island nation’s small size and vulnerability to climate change also contribute to a lack of raw materials. 

Median Income Kiribati

The median salary can also be considered the ‘middle salary’. Kiribati’s median monthly income is 500 AUD (about $315). Half the workers in the region earn more than this amount, the other half earn less. 

Salary Range

The salary range spans the lowest to highest in the country. In Kiribati, low earners make around 207 AUD (approximately $131) monthly, while high earners make closer to 1079 AUD (about $682).

Salary Comparison by Profession

Average salaries provide some insight, but you must also consider how experience, education, industry, position, and location impact wages. The following sections will explore these factors to provide a more comprehensive overview.

PositionAverage Monthly Salary (AUD)
Financial Manager1,500
General Manager1,200
Business Development Manager1,100
Financial Analyst1,000
Service Workers (Hotel/Restaurant/Tour Guides)600

Average Wage in Kiribati by Education

Education typically influences wage determination. However, in Kiribati, other factors may be more significant. 

For example, females in Kiribati tend to attain higher levels of education. They are more likely to enroll in and stay in school. However, they are also more likely to be unemployed or attain lower-paying jobs. 

Education may be a more significant factor in wage determination among male workers as many high-paying jobs in the country require a university degree. 

Salary Comparison by Experience

Experience is another factor to consider. Experienced workers in Kiribati tend to earn more than entry-level employees. They also become eligible for raises as they gain tenure in their country. 

Experienced workers are also more likely to attain high-paying work. For example, to qualify for a  P-2 contract, a Professional and Director staff contract typically paying close to $100,000 per year, you must have at least two years of experience in the industry. 

Salary Comparison by Location

Location typically factors heavily into wage determination. Urban workers earn more than rural workers due to higher living costs and proximity to large companies offering high-paying job opportunities. 

This situation rings true for Kiribati, where workers in the urban area of Tarawa tend to earn more than those in remote sections. However, due to an ample subsistence on agriculture, workers in rural areas may find lucrative job opportunities. Nonetheless, there are high poverty rates on the outer islands.

How Much is Minimum Wage in Kiribati?

The minimum wage in Kiribati is 1.30 AUD hourly (approximately 82 cents Kiribati minimum wage per hour USD) for local businesses and 3.00 AUD (about $1.89)  for overseas funded projects. It has not increased since November 1, 2016. 

Average Salary in Kiribati vs. the Rest of the World

The following charts provide more insight into salaries in Kiribati comparing them to wages in developed, developing, and undeveloped countries. 

Kiribati vs. Developed Countries

CountryAverage SalaryComparison to Average Kiribati Salary
United Kingdom€3,000 (approx. $3,116)– 861%
United States$5,677– 1483%
Norway50,790 NOK (approx. $4,700)– 1205%
Germany€4,300 (approx. $4,467)– 1150%
Austria€3,500 (approx. $3,636)– 900%

Kiribati vs. Developing Countries

CountryAverage SalaryComparison to Average Kiribati Salary
Romania4,000 RON (approx. $835)– 133%
Russia73,709 RUB (approx. $700)– 94%
Albania€1,500 (approx. $1,550)– 330%
Kazakhstan342,082 KZT (approx. $645)– 80%
Ukraine18,000 UAH (approx. $500)– 38%

Kiribati vs. Undeveloped Countries

Country Average Salary Comparison to Average Kiribati Salary
Thailand 97,500 Baht (approx. $2,772) – 677%
Philippines 18,423 PHP (approx. $875) – 144%
Vietnam 8.5 million VND (approx. $360) 0%
Egypt 13,244 EGP (approx. $263) 38%
Pakistan 45,000 PKR (approx. $150) 140%

Kiribati is considered a least developed country. It is also one of the most aid-reliant countries in the world. Development challenges include a small economy, vulnerability to climate change, and a low Human Development Index. 

The country’s work economy is primarily dominated by the public sector with the government being the largest employer. Those not employed in the public sector typically engage in village work and subsistence activities. However, Kiribati provides various outsourcing benefits including low labor costs, time zone compatibility with Asia and the United States, and favorable business regulations. 

What are the Most Common Outsourced Industries in Kiribati?

Employers considering Kiribati for outsourcing opportunities will benefit most by focusing on the following sectors:

Fishing

Kiribati is a prime source of seafood exports. Its exclusive economic zone (EEZ) for fisheries is one of the largest in the world. Seaweed farming is a growing economic activity in the country. 

Copra Processing

Copra processing involves drying coconut kernels to produce copra, which is used to extract coconut oil and can also be used in various food applications. Copra is a significant agricultural product in Kiribati, and the Kiribati Copra Mill Company Limited plays a key role in processing and refining it. The company is currently exploring coconut oil’s potential as a biofuel. 

Handicrafts

Kiribati is known for its fine handicrafts, including baskets and mats woven from coconut leaves, fans, jewelry, and cups made from sea shells. Craftspeople also develop larger items like canoes, houses, and swords made of polished coconut wood and shark’s teeth. These finely made products are customized from raw materials and can fetch a high price when sold outside the country. 

Conclusion

Kiribati may struggle with development issues, but its low-cost labor and unique products make it a desirable outsourcing destination. Companies that outsource to Kiribati can benefit from money savings, obtain quality products and services, and help the country overcome its economic issues.