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Papua New Guinea Social Contributions Guide 2026

Papua New Guinea does not have a general social security system. There is no mandatory national pension scheme, no unemployment insurance, and no mandatory health insurance for the general workforce. Employer and employee social contributions are not required by law. Retirement savings are managed through voluntary superannuation funds and industry-specific schemes. The absence of mandatory social contributions makes PNG unique in the region, though it also means workers must proactively plan for retirement.

Overview — No Social Security System

PNG is one of the few countries without a statutory social security system for the general population. There is no equivalent of a social security tax, national insurance contribution, or mandatory pension levy for most employees. The government has considered introducing a national social security scheme, but as of 2026 no legislation has been enacted. This means employees do not have mandatory deductions for social security from their salaries, and employers are not required to make matching contributions. The absence of social contributions reduces the cost of employment for businesses but places the burden of retirement planning on individual workers.

Superannuation Funds

Despite the absence of a mandatory system, PNG has a superannuation industry that provides voluntary retirement savings. Key superannuation funds include:

  • Nasfund — the largest superannuation fund, originally for public servants but now open to all
  • Nambawan Super — one of the oldest funds, covering private and public sector workers
  • PNG Super — industry fund for specific sectors

These funds operate on a defined-contribution basis. Contributions are typically a percentage of salary (e.g., 5–10% employee, 5–10% employer) but are determined by employment contracts or industry awards rather than by law. Contributions are taxed concessionally, and benefits at retirement are subject to favourable tax treatment.

Employer Obligations

While there is no mandatory social security, employers may be required to contribute to superannuation funds under:

  • Employment contracts — many contracts include superannuation contributions as a term
  • Industry awards — certain sectors have agreed contribution rates through collective bargaining
  • Public service — government employees have superannuation arrangements through Nasfund

Employers should check applicable awards and contracts for superannuation obligations. There is no mandatory employer contribution rate set by law for the general private sector.

Health Insurance

PNG does not have a mandatory national health insurance scheme. The public healthcare system is funded through general taxation (including the medical levy on income). Many employers provide private health insurance as an employee benefit, but this is voluntary. The medical levy (2% of taxable income) funds the public health system but is not a social contribution — it is a tax paid to the government.

FAQs

Do I have to pay social security contributions as an employee in PNG?

No, there is no mandatory social security system in PNG. Your employer may offer superannuation as a benefit, but it is not required by law.

What happens to my superannuation if I leave PNG?

If you have contributed to a superannuation fund, you may be able to withdraw your benefits upon permanent departure from PNG, subject to the fund's rules. Some funds require a minimum contribution period before benefits vest.

Are superannuation contributions tax-deductible?

Employer contributions to registered superannuation funds are generally tax-deductible. Employee contributions may be made from after-tax income. The investment earnings of superannuation funds are taxed at concessional rates.

Disclaimer

This guide provides general information about social contributions in Papua New Guinea for the 2026 tax year. Superannuation arrangements and labour laws may change. Always consult with a qualified PNG financial advisor or the relevant superannuation fund for advice specific to your situation. InvestmentKit does not provide financial advice.