Minister for Labour & Employment Kessy Sawang recently announced that the 2024 Minimum Wages Board (MWB) has commenced its work to review the minimum wage in the country.
She said, the last review was conducted in 2014 and the MBW are currently conducting hearings from NCD, Central & Gulf province lead by Beverly
The Government has allocated a budget of K4.7 million for the MWB of which K2 million has been received. This is based on a 100-day work plan for the establishment, appointment, and the conduct of the 2024 Minimum Wage Board Hearings.
Sawang stated, “We know PNG faces considerable development challenges such as high population growth with a significant youth bulge, low labour productivity, high-cost structures and poor health and education outcomes. These are some of the things that have led to unequal opportunities for Papua New Guineans to participate in economic development and to benefit from economic growth.”
She added that the Government has not sought to make any unilateral decision on a new minimum wage. There is a process set out in law to review and set minimum wages. It will be the MWB that receives submissions and considers them and makes an informed decision about an appropriate level for minimum wages. It’s the MWB’s decision or determination that will be presented to the Government with four months time.
MWB Chair lady Beverly elaborated further, stating that with the review underway, it is an open opportunity for employers, employees, workers and the general public to come forward to the board and lay their thoughts on the current minimum wage which is K3. 50.
“The Board cannot carry this inquiry without persons that are affected by the minimum wage. We even had the ordinary security guard walk into our hearings to express to us what they are receiving.”
She said, apart from the large employers, security guards in NCD are receiving K2.50 an hour, there’s a general consensus for an increase.
“We are mandated by the Government to sit and give this opportunity to workers and business houses to come to us and talk to us about what is happening out there. We do not know unless you come and talk to us.”
“I’m pleading to all employers, employees/workers to come to the board and speak to the inquiry that we are conducting. We covered NCD in 5 days, then to Central and Gulf province.”
She added that, from their hearings to date, there are presentations on industry wages, sectoral wages and whole lot of things that are coming before the board.
By next year, the Minimum Wages Board will travel up to Mt Hagen then to Goroka and Lae to carry out the next hearings where they are hoping to complete the hearings by the end of April.