HR Management in Nauru

Income tax

Wages in Nauru are taxed through Employment and Services Tax (EST) under the Employment and Services Tax Act 2014. Employers deduct EST from employment income each time they pay it. The tax deducted is a final tax, so employees do not file a return.

Non-resident employees

• Most non-resident employees are taxed at 20% of every dollar earned.
• Expatriates employed directly by the Government of Nauru have an annual tax-free threshold of A$20,000, with 20% above it.
• Non-residents employed in connection with the Regional Processing Centre are taxed at 30%.

What counts as employment income

EST applies to salary, wages, allowances, leave pay, overtime, bonuses, commissions and termination payments. Employer superannuation contributions paid from Nauru-sourced income are also taxable. Payments for work done in Nauru are taxable even if they are paid overseas.

Employer payroll costs

The Nauru Superannuation Scheme (NSS) is a defined contribution scheme under the Nauru Superannuation Act 2019, available to all Nauruan resident employees. Since 1 February 2026 contributions are mandatory for all employers and employees, and the employer rate has doubled.

Small employers with five or fewer employees, annual turnover below A$10,000 and gross assets below A$5,000 may be exempt. The scheme is administered by SuperLife, and the Nauru Revenue Office checks compliance.

Hiring & payroll set-up

Every employer and every person with a tax liability must register with the Nauru Revenue Office (NRO) and obtain a Tax Identification Number (TIN).

Employer obligations

• Register – obtain a TIN for the business, and make sure each employee has applied for their own TIN.
• Residence declaration – collect an Employee Residence Declaration so the correct resident or non-resident rate is applied.
• Deduct EST – withhold tax every time wages are paid.
• Pay monthly – file the monthly withholding tax return and pay the tax by the 15th of the following month.
• Annual summary – lodge the annual withholding tax summary within 15 days of the end of the financial year (by 15 July).
• Keep records – of all payments to employees and the tax deducted.

We could not confirm current statutory minimums for leave, notice periods or public holidays for private-sector employers in Nauru. Set these terms clearly in each employment contract and take local advice.