Papua New Guinea

The social security in Papua New Guinea is regulated by a law of 2000, implemented in 2002. It provides for a mandatory occupational retirement system.

The system covers employed persons in firms with 15 or more employees. Casual workers with employment contracts of less than 3 months and household workers are excluded from the system. Voluntary coverage is available for noncitizens and self-employed persons.

Funds are contributed by both the insured person and the employer in the following proportions: (i) Insured person: 6% of earnings; and (ii) Employer: 8.4% of payroll. In case of self-employed persons, the contribution is of 6% of earnings.

The old-age benefit is payable at age 55 upon retirement from active employment. A member may make a full withdrawal if unemployed and not contributing for 12 months or a partial withdrawal if unemployed and not contributing for 3 months. A lump sum is paid at any age after a 1-year waiting period.

The old-age benefit consists of a lump sum of total employee and employer contributions plus interest is paid. If an unemployed fund member has less than 1,000 kina (approximately USD 390) in the account, the total amount can be withdrawn after 3 months.

With at least 5 consecutive years of contributions, funds may be drawn down before age 55 to purchase a house or land to build a house, or to pay for repairs, maintenance, or extensions to an existing house. In such case, members must make an additional 2% contribution until the full value of the advance is repaid.

The Bank of Papua New Guinea ( regulates the superannuation funds. Superannuation funds are responsible for the administration of contributions and benefits and the investment of funds. Trustees of authorized superannuation funds appoint licensed investment managers and administrators. Directors, investment managers, and fund administrators are responsible for ensuring that the management, investment, and administration of superannuation funds comply with the law.


Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at

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