4. Competitive operational costs

Kiribati offers one of the most cost-competitive environments in the Pacific. With lower wages, affordable electricity and mobile data prices, and a straightforward tax regime, the country provides a significant advantage for businesses looking to operate efficiently and sustainably in the region.

Affordable and supportive labor environment

• Most competitive wage structure in the Pacific, with a monthly minimum wage of US$150, helping businesses manage labor costs while supporting local employment.
• Supportive and business-friendly labor regime, designed to encourage job creation, workforce flexibility, and smooth employer-employee relations.

^{Note: Values only for reference. These may change according to exchange rate fluctuations. Salaries do not include mandatory social benefits.} 

^{¹ Average monthly salary corresponds to 195 hrs./month avg. (9 hours per day x 5 days per week x 4.33 weeks per month – exceptions may apply).  -  ² Minimum wages are set according to province, industry and skill level. In this case an average is taken.  -  ³ There is no statutory minimum wage. Lowest average salary is used in stead.}  

^{⁴ Kiribati labor regime: Minimum monthly wage: US$150 for local businesses and companies (US$0.9/hrs) and US$346 for overseas-funded projects (US$2/hrs). Working hours: 40hrs per week across 5 days. Overtime: 150% rate without a maximum number of hours per week. Annual leave: Optional, 10 days common practice. Health insurance: Public healthcare system funded by the government; private is optional. Severance: Varies according to years of service and salary (formula applies). For more info review Employment and Industrial Relations Code 2015 (EIRC) and Labour Act 2003. Sources: https://wageindicator.org  -  https://www.salaryexplorer.com/  -  https://www.rivermate.com/}

Affordable utilities to power businesses

• Affordable electricity costs, with average prices at US$0.28 per kWh—lower than the regional average (US$ 0.37)—help reduce operating expenses for businesses across all sectors.
• Competitive mobile data rates, averaging US$3.19 per 1GB, position Kiribati among the most cost-effective countries in the Pacific, with prices lower than both the regional average (US$ 3.72) and advanced economies like New Zealand (US$5.89).

^{¹ Pacific (Oceania including Australia and New Zealand) is the most expensive continent in the world, averaging US$ 0.30 kWh. In this case The Pacific region average (US$0.35 kWh) is estimated based on the Pacific Island States, excluding developed economies and overseas territories.  -  Source: https://www.cable.co.uk/energy/worldwide-pricing/ - IRENA (International Renewable Energy Agency) – World Bank Database}

^{¹ Pacific (Oceania including Australia and New Zealand) is one of the most expensive continents in the world per 1GB per 30 days.  -  Source: https://www.cable.co.uk/mobiles/worldwide-data-pricing -  https://www.submarinecablemap.com/}

Fair and competitive tax environment

• Standard corporate tax rate of 30%, aligned with many Pacific countries—including Australia—providing familiarity and consistency for regional and international investors.
• Competitive sales tax at 13%, below the regional average, contributing to a more favorable and cost-effective tax environment for businesses operating in Kiribati.

^{Note1: Rates only for reference. They may vary according to company’s  sector, revenue, size, new legislation, etc.  -  * Includes Australia and New Zealand.  -  ¹ 10% for domestic products.} 

^{Source: https://taxfoundation.org/ - https://www.vatcalc.com/ - https://tradingeconomics.com - https://www.rivermate.com/}