Papua New Guinea’s workers earn 60% less than workers in the world’s top 10 countries when it comes to pay. Globally, PNG is ranked 167 out of 196 countries for wages, sitting 26 spots behind Fiji at 146 and far behind Australia, our closest neighbour, which ranks 6th.

Workers in a wide range of industries in developed countries, from administrative and creative roles to medical and blue-collar jobs, earn six times more than their counterparts in PNG. So why do workers in developed countries get paid so much more?

One reason is that developed countries have stronger labour market systems. These countries often have minimum wage laws, labour unions, and regulations that protect workers, ensuring they are paid fairly and given decent working conditions. This makes it harder for employers to take advantage of workers and forces them to offer better wages.

Another factor is that developed countries generally have richer, more stable economies. Their higher levels of wealth create more demand for skilled workers, which pushes wages up. In these countries, companies are willing to pay more to attract the best talent because the economy allows them to afford it.

The cost of living is also higher in developed countries. Things like housing, groceries, and utilities are often more expensive. Employers have to offer higher wages so workers can afford to live comfortably in cities where costs are high. This includes covering essentials like healthcare, education, and transportation. 

Developed countries also face tough global competition. In fields like technology or finance, companies are under pressure to offer competitive wages to attract skilled workers from around the world. The demand for specialised skills often drives up wages even more.

Finally, government policies in developed countries play a role. These countries often have stronger social programs, such as social security and welfare, that support workers. Their governments also tax more to fund these services, which helps reduce income inequality and supports higher wage standards.

These factors combined explain why workers in developed nations typically earn more than those in countries like Papua New Guinea. Hence, we ask the question, is Papua New Guinea’s current minimum wage enough to meet the rising cost of living and improve the quality of life for Papua New Guineans?