Papua New Guinea’s minimum wage, which is K3.50 per hour and has not changed since 2014, is currently being reviewed. The government created the 2024 Minimum Wages Board – a reconstituted version of the original Minimum Wages Board that last conducted a review in 2014 – to update the wage as the cost of living increases in PNG. According to PNG Haus Bung, Labour Minister Kessy Sawang agrees that the minimum wage needs to increase due to the rising cost of living.
Prime Minister James Marape stressed that a balanced approach is necessary so that wage increases do not harm businesses, especially small ones that are vital for economic growth. “We need to ensure that any wage increases do not badly impact businesses,” he noted during a recent appearance on the Nasfund FM100 Talkback Show. The government has allocated almost K5 million for the review process, which involves public consultations across the country.
Across the South Pacific, minimum wages vary significantly and are adjusted at different intervals. For instance, Fiji’s minimum wage was raised to FJD5.00 (PGK9.09) per hour on the 1st of April 2025, while Vanuatu’s was also raised to VUV300 (PGK10.18) in June of 2023. In contrast, Kiribati’s minimum wage rates of AUD1.30 (PGK3.46) for locally funded businesses and AUD3.00 (PGK7.98) for internationally funded businesses per hour have seen fewer adjustments over time. The Cook Islands lead the region with NZD9.50 (PGK24.55) per hour, reflecting more frequent reviews.
Here is a comparison of minimum wages in the Pacific, updated as of May 27th, 2025:
| Country | Minimum Wage (PGK/Hour) | Last Adjustment |
| Papua New Guinea | 3.50 | 2014 |
| Fiji | 9.09 | 2022 |
| Vanuatu | 10.18 | 2023 |
| Kiribati | 3.46 & PGK7.98 | 2025 |
| Cook Islands | PGK24.55 | 2025 |
| Solomon Islands | PGK3.92 | 2019 |
| Australia | PGK64.09 | 2024 |
These differences in figures may seem alarming at first, but they make more sense when we consider the cost of living and inflation – key factors that heavily influence minimum wage rates, as higher living costs typically lead to higher wages. For example, when we compare something as universal as accommodation, according to LivingCost.org’s 2025 data, monthly rent for one-bedroom accommodation in Port Moresby averages PGK 830, compared to PGK 1,460 in Suva, Fiji, when converted to PGK using current approximate exchange rates.
When inflation is high, the purchasing power of the minimum wage decreases unless wages are adjusted accordingly. This means that if wages do not keep pace with inflation, workers effectively earn less, reducing their ability to afford basic necessities. Minimum wage often needs to be reviewed to compensate for inflation-driven costs of living.
Because of this, some businesses worry that higher wages might lead to job losses. However, the International Labour Organisation (ILO) commended PNG’s inclusive approach, involving unions, employers, and the public. This collaborative approach ensures that decisions made will address economic challenges while also promoting fairness and consultation.
As discussions continue, the ongoing debate is about how raising the minimum wage, while helping workers, may hurt businesses. During the launch of the PNG Youth Resource Week in January of 2025, Minister Sawang stated that a new wage rate would be announced later in the year.
The question now is, will Papua New Guinea’s efforts to update its minimum wage strike the right balance between supporting workers and sustaining businesses?
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