Kiribati, officially known as the Republic of Kiribati, is an island country in the central Pacific Ocean, off the coast of New Zealand. It has a small, remote island economy, with a workforce of 72,300 people (2020) and a GDP of 279 million US dollars (2023).

More companies are expanding abroad for hiring, and Kiribati is no different. With an adaptable, resilient workforce, cost-effective labor, and government support in the form of hiring incentives, simplified business registrations, and tax breaks, companies are looking to Kiribati for hiring new talent. Kiribati’s economy is dominated by the public sector, with dominant industries including public administration, fishing, agriculture, tourism, and construction.

This help guide will inform companies expanding into Kiribati of the employee benefits that they must provide to workers to ensure labor laws are complied with, as well as supplementary benefits to consider. We’ll also explain how Remote People can help optimize hiring in Kiribati with a range of services, including our Employer of Record (EOR) solutions.

Kiribati Employment Laws

Labor laws in Kiribati are primarily governed by the Employment & Industrial Relations Code of 2015. This act provides a legal framework for working practices in Kiribati, including equal pay, collective bargaining, and employee benefits.

Other relevant acts that provide information regarding Kiribati labor laws include:

  • Constitution of Kiribati
  • Labour Inspection Powers
  • Kidibati National Provident Fund Act

When employing people in Kiribati, it’s key to consult legal experts for the most detailed compliance. This is to ensure that employment practices adhere to the most up-to-date legislation set by local labor laws and simplify the process of hiring in Kiribati.

Mandatory Employee Benefits in Kiribati

There is a range of mandatory employee benefits that employees in Kiribati are entitled to. We’ve detailed the primary benefits below:

Social Security Contributions

Kiribati has a Social Security System which provides financial benefits to workers in Kiribati in varying situations such as old age, disability, unemployment, and sickness. The main source of funds for Social Security is as follows:

Contributor Contribution
Employees 7.5% of gross monthly earnings
Self-employed workers At least A$5 per month
Employers 7.5% of monthly covered payroll

Annual Paid Leave

Employees in Kiribati are entitled to a maximum of 30 days of annual leave per year, generally once they have completed 12 months of continuous service. 

This must be paid in full, and public holidays are considered separate from annual leave entitlement.

Working Hours

The standard work week in Kiribati is 40 hours per week, with employees generally working 8 hours Monday through Friday.

Employees should receive at least one hour’s meal break when working a 6-hour shift.

Night hours count as time worked between 10 pm – 6 am, and there are no restrictions on women working night hours. 

Overtime Pay

Employees who work beyond the standard 40 hours a week are entitled to overtime compensation.

This is calculated as 1.5 times a worker’s normal hourly rate if the work is carried out on a weekday or a Saturday, or twice the hourly rate if the work is carried out on a Sunday or a public holiday.

Workers who incur a yearly salary of more than $8528 will receive time off in place of overtime compensation.

Public Holiday Leave

Many public holidays in Kiribati entitle workers to a paid day off if the holiday falls on a working day. The public holidays in Kiribati are as follows:

  • January 1: New Year’s Day
  • March 8: International Women’s Day
  • April 3: Good Friday (movable date)
  • April 6: Easter Monday (movable date)
  • May 1: Labor Day / May Day
  • July 12: Independence Day
  • August 3: Youth Day
  • December 11: Human Rights and Peace Day
  • December 25: Christmas Day
  • December 26: Boxing Day

Sick Leave

Employees become eligible for sick leave with pay after carrying out a minimum of 6 months of employment with their employer.

This consists of up to 20 days of paid sick leave per year. Workers must provide a medical certificate signed by a medical practitioner to qualify for sick pay.

Maternity Leave

Female employees are entitled to maternity leave if they have a baby.

Maternity leave in Kiribati is 12 consecutive weeks, which is usually split as 6 weeks before birth and 6 weeks postpartum.

Employees must be paid a minimum of 25% of their normal wages while on maternity leave – most employers pay their workers in full for the first 6 weeks.

Workers must also be allowed to take paid nursing breaks to feed their child, up to the point that the child is 1 year old. This is usually offered at a half-hour break for every 4 hours worked.

Paternity Leave

There is no statutory obligation for employers to provide their workers with paternity leave. Some companies offer it as a supplementary benefit, but this is given at the employer’s discretion.

Severance Pay

Employees who have their contracts terminated without a reason of employee misconduct may be eligible to receive severance pay.

Severance pay is paid once an employee has completed a minimum of 6 months of service with their employer. 2 weeks of pay is provided per year of service, and employees will also be offered free passage for themselves and their family to visit their home island in the month following severance.

Pensions

The pension system in Kiribati is currently made up of the government-funded old-age pension and the Kiribati Provident Fund (KPF).

The old-age pension is a non-contributory social pension scheme that provides basic income to citizens of retirement age who require additional financial support. Citizens must be 67 years of age or older to qualify for the scheme and receive a flat-rate monthly payment determined by the government budget. This is usually in the region of $50 per month or $60 per month for those over the age of 70.

The KPF is a defined contribution scheme that is mandatory for formal sector workers. It requires a 7.5% contribution from employers and employees, and provides income to workers upon retirement age. Self-employed workers can join the scheme voluntarily.

Supplementary Employee Benefits in Kiribati

It’s highly recommended that companies consider offering supplementary benefits to workers in Kiribati.

This can help encourage people to apply for job vacancies and also increase staff retention rates. A few examples of supplementary benefits companies could offer include the following:

  • Performance bonuses
  • Flexible working hours
  • Enhanced pension opportunities
  • Increased leave entitlement
  • Company car
  • Advanced training opportunities
  • Housing, transport, or food allowances

Optimize Employee Benefits with Remote People

Remote People can assist companies doing business in Kiribati with a range of different services.

Our Employer of Record (EOR) solution is especially useful when hiring abroad. The EOR acts as the legal employer for your workers in Kiribati—ensuring full compliance with local labor laws, managing benefit entitlements, and handling payroll and tax obligations. This allows you to focus on other critical areas of your business while we take care of employment compliance.

We can help your business directly hire people in Kiribati with our recruitment services, whether this be employed people or through hiring independent contractors. Our experienced team is fluent in the local language, understands Kiribati customs, and knows the best places to advertise job roles to secure the best candidates. They can also help with constructing employee contracts and compensation packages to appeal to the top talent.

You may also want to consider hiring a Kiribati PEO (Professional Employer Organization). A PEO would work alongside your company to ensure tasks in HR, payroll, and compliance are handled correctly, with a focus on ensuring employee management is carried out legally and smoothly. This can involve anything from business registration to employee permits and tax compliance.

Contact Remote People today and start expanding your business into Kiribati.