Key Takeaways

  1. Fishing and agriculture drive Kiribati’s economy, and remittances also play a key role.
  2. An employer of record fully manages employment, while a professional employer organization shares HR responsibilities.
  3. Agriculture, remittances, and tourism play essential roles in supporting Kiribati’s economy and workforce.

Kiribati is a Pacific island nation comprised of 33 coral atolls and reef islands spread across a vast ocean area. Fishing is the most significant industry, with Kiribati earning substantial revenue from selling fishing licenses to foreign companies. The country’s waters are rich in tuna, making it an important location for international fishing operations. Local communities also rely on fishing for food and small-scale trade.

Additionally, Agriculture plays a key role in the livelihoods of many Kiribati residents. Coconuts are widely grown, and copra (dried coconut meat) is a major export product. Kiribati’s coconut plantations cover large parts of the islands, providing income for many families. Other locally grown crops include breadfruit, pandanus, and taro, which are essential for food security and traditional diets.

Livestock farming, particularly pigs and chickens, also contributes to food production and trade within local markets. Another important source of income comes from Kiribati citizens working abroad, particularly as seafarers on international ships. Many families depend on money sent home by these workers, and remittances make up a significant portion of the national economy. The country has also developed specialized training programs to prepare its workforce for jobs in the maritime industry, ensuring that many citizens can find employment on commercial vessels around the world.

The government continues to invest in economic growth by improving infrastructure and expanding opportunities in sectors like tourism and renewable energy. While tourism is not as large as in some other Pacific nations, visitors are drawn to Kiribati for its beaches, world-class fishing, and cultural experiences. With ongoing development projects and a focus on sustainable industries, Kiribati offers a business environment that supports both traditional livelihoods and modern opportunities.

What is an Kiribati Employer of Record?

Our Kiribati Employer of Record solution lets you hire and manage local staff through Remote People, which becomes the legal employer on record. We handle payroll processing, tax and social-security contributions, and full compliance with Kiribati’s labor regulations—so you can focus on directing your team without the need to establish a local entity.

What is the Difference Between a Kiribati EOR and a Kiribati PEO?

A Kiribati EOR company fully manages hiring, payroll, taxes, and compliance, allowing businesses to employ staff without establishing a local office. This is particularly beneficial for companies aiming to expand into Kiribati swiftly and compliantly. In contrast, a PEO shares employment responsibilities with the client company, handling HR tasks while the business oversees daily operations.

This arrangement is advantageous for small and mid-sized businesses seeking enhanced employee benefits and HR support without the expense of a full HR department. Larger companies may prefer an EOR, as it provides full control over their workforce while transferring legal employment responsibilities to the EOR provider, simplifying compliance with Kiribati’s employment laws. The optimal choice between an EOR and a PEO depends on a company’s size, objectives, and desired level of control over its workforce.

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How Does a Kiribati Employer of Record Work?

A Kiribati EOR company takes full legal responsibility for hiring, onboarding, payroll, and compliance, enabling businesses to employ workers without establishing a local entity. The EOR manages Kiribati-specific tax filings and ensures adherence to local labor laws.

For instance, employers in Kiribati are required to comply with regulations set by the Ministry of Employment and Human Resources to ensure fair labor practices. Additionally, Kiribati has been focusing on improving workplace safety standards, and an EOR helps businesses stay compliant by implementing necessary safety measures and managing risk.

What Labor Laws Apply to Hiring in Kiribati?

In Kiribati, labor laws play a significant role in shaping hiring practices, and ensuring fair treatment and the well-being of employees.  

Employment Contracts

Employers must provide a written contract of employment, signed by both the employer and the employee. This contract must clearly state the terms and conditions of employment as mandated by national labor regulations.

Employment conditions in Kiribati can vary by sector, although the Employment and Industrial Relations Code 2015 provides the general legal framework. Some industries apply additional rules through sector policies or collective agreements.

  • Fishing Industry: The fishing sector often uses seasonal or fixed-term contracts. Workers may receive higher overtime rates during peak fishing periods or extended work at sea.
  • Public Sector: Government employees follow separate administrative rules, including PAYE payroll systems and a public pension scheme. Notice periods for civil servants may be up to 3 months depending on the position.
  • Education Sector: Teachers and school staff usually follow the academic calendar, with contracts that include school holiday provisions and responsibilities outside classroom hours.
  • Healthcare Sector: Healthcare workers commonly operate on 24-hour roster systems with rotating shifts, night work, and weekend coverage to ensure continuous patient care.

Standard Working Hours

In Kiribati, employees work a standard 40-hour work week. Overtime is compensated at 1.5x the base rate for weekday hours worked beyond 40, and 2x the base rate for work performed on weekends or public holidays. All rates are denominated in AUD, unless the employer operates an offshore account.

Probation Period

In Kiribati, probation periods are covered under the Employment and Industrial Relations Code 2015. A 3-month probation is standard practice, although there is no statutory maximum length, so the duration can be set in the employment contract. During probation, employment may be ended with a 1 week notice period. Employees generally cannot file unfair dismissal claims during probation unless the termination involves discrimination or another unlawful reason. At the end of probation, the employer should confirm whether the employee will be retained, have probation extended, or have employment terminated.

Employer probation checklist:

  • Review employee performance
  • Confirm completion of 3-month probation
  • Decide: confirm, extend, or terminate employment
  • Provide written notice to the employee
  • Update employment and payroll records

Payroll and Employment Taxes in Kiribati

Minimum Wage

In Kiribati, the minimum wage is established to ensure a basic standard of living for all workers, with higher rates specifically mandated for projects funded by international donors to align with global labor standards.

CategoryMinimum Wage (AUD per hour)
Local businesses and private sector$1.30 AUD per hour
Overseas‑funded projects$3.00 AUD per hour

Kiribati Provident Fund (KPF) Contributions

In Kiribati, social security is managed through the Kiribati Provident Fund (KPF). Under the Kiribati Provident Fund Act, both employers and employees are legally required to contribute a percentage of gross wages to ensure financial security for workers upon retirement, disability, or death.
ContributorContribution Rate
Employee7.5 %
Employer7.5 %
Total Combined Contribution15 %

Personal Income Tax

In Kiribati, Personal Income Tax (PIT) follows a progressive system, meaning the tax rate increases as your income goes up. Under the Income Tax Act 2023, the first $5,000 you earn is tax-free, and higher percentages are only charged on the money you earn above each specific level.

Annual Income Bracket (AUD)Tax Rate
$0 – $5,0000% (tax-free)
$5,001 – $15,00020% on the excess over $5,000
$15,001 – $30,000AUD 2,000 + 25% on the excess over $15,000
$30,001 and aboveAUD 5,750 + 30% on the excess over $30,000

Non-resident individuals are taxed at a flat 30% rate on their Kiribati-sourced income.

Time Off and Leave in Kiribati

Annual Leave

In Kiribati, annual leave is governed by the Employment and Industrial Relations Code 2015, which establishes a flexible entitlement of 0 to 30 days per year, with the specific amount determined by the individual contract of employment. Any public holiday falling within an employee’s annual leave cannot be counted as an annual leave day. Annual leave is non-cumulative, meaning unused leave cannot be carried over to the following year.

Maternity Leave

The Employment & Industrial Relations Code 2015 provides for 12 weeks of maternity leave, during which employers are required to maintain at least 25% of the employee’s pay. Additionally, employers must coordinate paychecks with the Kiribati National Provident Fund (KNPF) to ensure proper contributions and compliance with statutory requirements.

Sick Leave

Sick leave entitlements for employees in Kiribati are governed by the Employment and Industrial Relations Code 2015. Under Section 93 of the Code, after an employee has completed at least 6 months of continuous employment with the same employer, they are entitled to up to 20 days of paid sick leave per year for genuine illness or injury. Employees must notify their employer as soon as reasonably practicable and may be required to provide a medical certificate from a medical practitioner if requested by the employer.

Public Holidays

In Kiribati, employers are generally required to observe 15 to 16 public holidays each year. These holidays are official days off designated by the government, and if employees do not work on these days they are normally paid by the employer under employment regulations. 

  • New Year’s Day (January 1)
  • International Women’s Day (March 6) 
  • Good Friday (April 3) 
  • Easter Monday (April 6) 
  • National Health Day (April 10) 
  • International Labour Day (May 1)
  • National Police Day (June 22) 
  • Gospel Day (July 10)
    National Culture and
  • Senior Citizens Day (July 11)
  • National Day (July 12)
  • National Day Observed (July 13) 
  • Kiribati Special Day (July 14) 
  • National Youth and Children’s Day (August 7) 
  • World Teachers’/Education Day (October 2) 
  • Human Rights Day (December 11) 
  • Christmas Day (December 25)
  • Boxing Day (December 28) 

In Kiribati, when a fixed-date holiday falls on a weekend, it is officially observed on the following Monday (or preceding Friday for specific health/youth days) to ensure employees receive a paid day off. Movable holidays such as Good Friday and Easter Monday change each year according to the Christian calendar, while the other holidays are fixed.

Work Permits and Visa

Employing expatriates in Kiribati requires a work permit issued through the Ministry of Employment and Human Resource, and employers must generally sponsor the foreign worker. Companies are typically expected to maintain a workforce with no more than 20% non-Kiribati employees, reflecting local hire preference policies. Employers must demonstrate that a suitable local candidate is not available before hiring an expatriate.

Common visa or permit categories include investor, specialist, and service provider roles. Work permit applications usually take 6–8 weeks to process, with government fees typically ranging from AUD 200–500 depending on the category and duration. Permits must be renewed before expiry, and employers remain responsible for compliance with immigration requirements, including sponsorship obligations and supporting documentation.

Termination and Severance in Kiribati

Termination

Termination of employment must be based on valid reasons, such as misconduct, poor performance, incapacity, or operational requirements. Employers are generally required to provide written notice, which ranges from 1 to 4 weeks depending on the employee’s length of service.

In cases of serious misconduct, employers may terminate employment without notice (summary dismissal). The law also prohibits unlawful termination, including dismissal based on discrimination, union membership, or employee complaints.

Notice Period

In Kiribati, the notice period ranges from 1 week to 4 weeks depending on the employee’s length of service, and disputes over unfair or unlawful termination may be brought before the Employment and Industrial Relations Court under the Employment and Industrial Relations Code 2015.

Length of ServiceMinimum Notice
Less than 1 year1 week
1–3 years2 weeks
3–5 years3 weeks
5 years or more4 weeks

Pacific Employment Comparison

The table below compares key employment indicators across Kiribati, Fiji, Samoa, and Solomon Islands. It highlights how Kiribati’s labor framework differs from neighboring Pacific economies, particularly in wage levels, statutory costs and income tax.

CountryMin Wage (AUD/hr)Employer Social SecurityMax Income Tax Rate
Kiribati$1.307.5% (KPF)30%
Fiji$3.306.0% (FNPF)20%
Samoa$2.6810.0% (SNPF)27%
Solomon Islands$1.457.5% (SINPF)40%

Kiribati has the lowest labor costs in the region for local businesses. Its employer social security is 7.5%, lower than Fiji (10%) and Samoa (9%), while the maximum income tax rate of 30% is mid-range compared to neighboring countries.

To illustrate the costs of employment, here is a worked example for hiring a Project Manager in Kiribati with a gross annual salary of AUD 48,000. While the base salary is the starting point, the total Employer Cost includes mandatory social security, tax withholding, and benefit reserves.

Cost ComponentCalculationAnnual Amount (AUD)
Gross SalaryBase Annual Pay$48,000
KPF Employer (7.5%)$48,000 × 7.5%$3,600
PIT Withholding (Estimate)$48,000 × 10% average$4,800
Annual Leave Accrual30 days reserve$2,400
Sick Leave Reserve10 days estimated use$800
Total Employer CostSum of all costs$59,600
Percentage of Salary$59,600 / $48,000124.2%

The total cost of employment in Kiribati is competitive within the Pacific region, typically falling between the higher overheads of Australia and the leaner structures in Fiji.

  • Kiribati: ~124% of base salary.
  • Australia: 125% – 130% (due to higher Superannuation and Payroll Tax).
  • Fiji: ~115% (due to lower social security and leave mandates).

What Are the Benefits of a Kiribati EOR?

An EOR acts as the legal employer, handling employment contracts, payroll management, tax compliance, and adherence to local labor laws, allowing your business to focus on growth without the complexities of establishing a legal entity in Kiribati. This partnership ensures compliance with local regulations, such as mandatory contributions to the Kiribati Provident Fund and adherence to specific termination procedures.

What are the Downsides of a Kiribati EOR

Using a Kiribati EOR firm can make hiring and HR tasks easier for businesses. However, there are some downsides to consider. Using an EOR means paying extra fees, which can affect your company’s budget. These costs can add up over time, impacting your profits.

Additionally, when you rely on an EOR, you give up some control over HR activities, which might lead to less direct oversight of employee relations and company culture. It is important to think about these factors carefully before deciding to work with an EOR in Kiribati.​

How to Choose a Kiribati EOR

Remote People combines deep expertise in Kiribati’s Employment and Industrial Relations Code of 2015 and local wage requirements—so you can be confident every contract, payroll calculation, and statutory contribution meets the letter of the law.

Our transparent, all-inclusive pricing ensures you know exactly what you’re paying for: from contract drafting and tax remittance to benefits administration and social-security filings—no hidden fees, no surprises.

With Remote People’s in-house team managing your Kiribati workforce end-to-end, you benefit from dedicated local support, proactive compliance monitoring, and seamless day-to-day HR administration, allowing you to focus entirely on your core business objectives.

Engage a Kiribati Employer of Record with Remote People

Expanding into Kiribati brings unique challenges—from remote geography to specialized local labor regulations. Remote People serves directly as your Employer of Record, managing every aspect of employment in-country and ensuring full adherence to Kiribati’s labor laws. This lets you focus on your core objectives while we handle the administrative and compliance details.

Our in-house expertise also tackles common barriers in Kiribati, such as limited access to skilled talent and financial services. With Remote People overseeing your workforce operations end-to-end, you can enter the Kiribati market confidently and maintain smooth, efficient growth.

Remote People simplifies your expansion into Kiribati by serving as your Employer of Record. We manage local compliance, payroll, and hiring—helping you build a strong team and achieve long-term success in the region. Contact us today to get started.

Frequently Asked Questions

Yes. A Kiribati EOR can sponsor work permits for expatriate employees, ensuring compliance with the 20% foreign worker limit and government requirements that no qualified local candidate is available. The EOR manages visa applications, renewals, and immigration compliance.

Employees hired through an EOR are provided with fully compliant employment contracts, including statutory benefits such as:

  • Annual leave (up to 30 days)
  • Sick leave (up to 20 days after 6 months)
  • Maternity leave (12 weeks at 25% pay)

The EOR ensures contracts follow local labor law, while employers retain operational control over the team.

The EOR handles all aspects of lawful termination, including providing the correct notice period (1–4 weeks based on service) and processing severance if required. For employees dismissed due to misconduct, the EOR ensures compliance with summary dismissal rules under the Employment and Industrial Relations Code 2015, reducing legal risk for the company.

Yes. A Kiribati EOR ensures that both on-site and remote staff comply with local labor laws, including minimum wage, overtime, social security contributions, and statutory leave entitlements. This allows companies to hire talent anywhere while remaining legally compliant in Kiribati.

Using an EOR does not create a permanent establishment in Kiribati for your company. The EOR assumes responsibility for payroll taxes, social security contributions, and statutory reporting, meaning the foreign company itself is generally not subject to corporate tax in Kiribati, while staying fully compliant with local employment law.