MINIMUM WAGE INCREASE WILL CONTINUE TO INCREASE IN THE NEXT 3 YEARS

PAPUA New Guinea’s minimum wage increase is now legally in effect, following a determination by the Minimum Wages Board under the Employment Act.

Beverley Doiwa, Chairperson of the 2024 Minimum Wages Board, said the change comes after months of public discussion about worker pay and labour reforms.

The minimum wage has increased from K3.50 to K5.00 per hour for 2026, with further planned increases to K5.25 in 2027 and K5.50 in 2028.

In a recent statement she said, the rate will be implemented through a staggered increase: rising to K5.25 in January 2027, and then to K5.50 in January 2028. This phased approach is designed to ease the transition for employers while ensuring meaningful wage growth for workers.

This decision was a result of a comprehensive review and a balancing act of various factors as outlined in the Minimum Wages Board’s Terms of Reference.

She further stated that the Board’s inquiry found that the 2014 minimum wage, which remained unchanged for over a
decade, had been significantly eroded by a rising cost of living as evident in compelling
submissions from workers, civil society, and unions detailing the daily struggles faced by low-income families to afford basic necessities like food, housing, and transport.

Meantime, Acting IRC Commissioner General Sam Loi has clarified that the Internal Revenue Commission is not responsible for enforcing the wage increase, but the Department of Labour and Industrial Relations is in charge to ensure employers comply with the new legal rates.

Penalties for employers who fail to implement the minimum wage will be applied by the Labour Department that is headed by Secretary George Taunakekei, under the guidance of Labour Minister Kessy Sawang.

The minimum wage increase is a step forward in improving worker incomes and aligning PNG with fair labour practices.