A new report by the International Labour Organization (ILO), in collaboration with the Massey Business School, highlights that effective minimum wage systems are crucial for reducing working poverty, advancing social justice, and enhancing economic resilience across Pacific Island Countries. The report, titled “Minimum Wage Systems and Wage-Setting Practices in the Pacific Island Countries,” offers a detailed review of existing wage systems and practices, revealing that while most Pacific nations have legal minimum wage provisions, enforcement challenges, weak social dialogue, and limited data undermine their impact.
The study points to varied national contexts, noting that countries such as Fiji and Samoa have more structured wage systems, while Tuvalu and Vanuatu are still developing theirs. ILO Director for Pacific Island Countries, Martin Wandera, emphasized that strengthening wage-setting systems in the Pacific is vital not only for fairness but also for building resilience in economies that remain vulnerable to climate and financial shocks.
The report recommends that Pacific countries establish comprehensive national wage policies connected to broader employment and social protection objectives. It calls for investment in institutional capacity, including labour ministries, wage boards, and data systems. Professor James Arrowsmith from Massey Business School noted that limited enforcement, data shortages, and weak social dialogue continue to hinder progress, making it difficult for wages to keep pace with rising living costs and ensure predictability for employers.
To make wage systems more effective, the report urges governments to conduct regular and transparent reviews of wage levels, supported by reliable data and strong stakeholder engagement. It also stresses the importance of extending minimum wage coverage to informal workers, particularly women, who make up a large share of low-paid labour in agriculture and tourism.
The report further identifies limited collaboration between governments, employers, and trade unions as a major barrier to meaningful reform. It concludes that aligning national frameworks with international labour standards, such as the ILO Minimum Wage-Fixing Convention (No. 131), will strengthen regional cooperation and help Pacific nations progress toward Decent Work and the Sustainable Development Goals.
