The International Labour Organization (ILO) has welcomed Papua New Guinea’s (PNG) recent increase in its national minimum wage as a landmark achievement for labour rights and social development. Announced on 18 September 2025 during PNG’s 50th Independence celebrations, the new minimum wage will rise from PGK 3.50 (US$0.84) to PGK 5.00 (US$1.20) in 2026, with further scheduled adjustments to PGK 5.25 in 2027 and PGK 5.50 in 2028. This increase ends nearly a decade of wage stagnation and is the result of a transparent, inclusive, and evidence-based wage-setting process led by the country’s Department of Labour.
The process was overseen by the re-established Minimum Wages Board (MWB), which brings together representatives from the Papua New Guinea Trade Union Congress (PNGTUC), the Employers Federation of PNG (EFPNG), and other key stakeholders. The ILO provided technical support and capacity-building to ensure an effective and balanced approach. Martin Wandera, ILO Director for Pacific Island Countries, highlighted that the new minimum wage reflects constructive collaboration between government, employers, and workers, balancing economic realities with the needs of employees while advancing decent work, social dialogue, and sustainable growth.
Nationwide consultations concluded in June 2025 ensured the wage increase aligns with current living costs and employers’ capacity to pay. The process also prioritized gender equality and non-discrimination, recognizing that women are often overrepresented among the lowest-paid workers. As a result, the new wage will benefit low-income workers, help reduce the gender pay gap, and improve conditions for marginalized groups across PNG.
Looking ahead, the ILO will continue partnering with PNG to develop a comprehensive Minimum Wages Policy. This initiative aims to institutionalize transparent, inclusive, and evidence-based wage-setting mechanisms to ensure future adjustments adequately reflect economic conditions, living costs, and social considerations.
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