The Government of Papua New Guinea (PNG) has taken decisive steps to address the rising cost of living by reestablishing the Minimum Wages Board (MWB) to review and update the country's minimum wage standards, which were last revised in 2016. Under the leadership of the Minister of Labour and Employment and the Department of Labour and Industrial Relations, nationwide hearings were organized to engage a wide range of stakeholders.
In response to a request from the government and social partners, the International Labour Organization (ILO) conducted a comprehensive workshop on minimum wage policy to support the review process. This workshop focused on key aspects such as the application of ILO Convention 13 (Minimum Wage Fixing Convention, 1970) , sharing best practices from other countries, and utilizing evidence-based approaches to provide the technical expertise needed to inform decision-making.
Minister for Labour and Employment, Hon. Kessy Sawang, emphasized the importance of this initiative, stating, "The Government has approved the 2024 Minimum Wages Board to review minimum wages in Papua New Guinea. This, as you are all aware, is overdue. The last minimum wage review took place 10 years ago and a minimum wage rate of K3.50 per hour was set and this has not adjusted since then."
The workshop aligned with the principles of the 2030 Agenda for Sustainable Development, emphasizing the importance of advancing decent work and reducing inequality. It aimed to empower stakeholders and policymakers in crafting effective wage policies underpinned by social dialogue. The ILO consistently stressed the significance of considering both the needs of workers and their families, often referred to as the concept of a living wage, and economic factors when formulating wage policies.
Participants were equipped with the knowledge and tools necessary to design and implement wage policies that advance decent work, reduce inequality, and foster inclusive and sustainable growth. The program also emphasized fostering a constructive dialogue on developing a roadmap to enhance PNG's wage-setting practices, exploring sector-specific or location-based frameworks, and utilizing evidence-based information to facilitate informed policymaking decisions.
Minister Sawang also highlighted the broader goals of the workshop: "We need to think about the system for minimum wages and how we can move from an ad hoc irregular system to one that is more structured both in terms of timing but also in being evidence-based. I think you will agree that a pause for a decade is unacceptable - both for workers and indeed for employers too."
The ILO's role focused on strengthening national institutions like tripartite minimum wage commissions, refining aspects of minimum wage systems, and promoting evidence-based social dialogue informed by robust data. This initiative was crucial for ensuring adequate wages that provide decent living standards for workers and their families while ensuring the sustainability of enterprises, the bedrock of job creation.
ILO Office for Pacific Island Countries, Director Martin Wandera said, "This workshop is a significant step towards ensuring fair and sustainable wage policies in Papua New Guinea. By bringing together diverse stakeholders, we aim to create a robust framework that supports both workers and employers, fostering economic growth and social equity."
