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Papua New Guinea Takes Bold Step to Tackle Rising Living Costs with Wage Review

The government of Papua New Guinea has taken a significant step to address the growing challenges of rising living costs by launching a comprehensive review of the current K3.53 minimum wage. Supported by a K5 million allocation, the review aims to reassess the wage structure for workers in both the private and public sectors. The current rate, set in 2014, has remained unchanged for nearly a decade, prompting calls for an update to better reflect the economic realities faced by workers today.


Minister for Labour and Industrial Relations, Kessy Sawang, revealed that the review process began last year in Port Moresby and Central Province and will expand to Gulf Province and other regions this year. She emphasized that the review is being conducted by an independent committee, which includes representatives from the Employers Federation, Trade Union Congress, churches, youth groups, community organizations, and the government. “This is not a decision made by the government alone but a collaborative effort involving all key stakeholders,” Sawang stated.

The minister highlighted the importance of the minimum wage in providing social protection and ensuring that low-income earners are not left vulnerable to poverty or the escalating cost of living. “There is a clear consensus that the minimum wage must be increased to meet the needs of our workers,” she affirmed.

Sawang also called on citizens to actively participate in the nationwide consultations being conducted by the review committee. She stressed the value of public input, saying, “We want to hear from as many people as possible. Your voices will help shape the future of Papua New Guinea and ensure that this review truly reflects the needs of our people.”

The committee is working towards a deadline of May 31, with Sawang assuring that all stakeholders, including herself, the board, and the department secretary, are fully committed to meeting this timeline.

This initiative marks a pivotal moment for Papua New Guinea as the government seeks to address the economic struggles faced by workers and create a fairer wage system that aligns with the current cost of living. The outcome of this review could have far-reaching implications for the nation’s workforce and its fight against poverty.

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