The increase in Papua New Guinea's (PNG) national minimum wage has been welcomed by the International Labour Organization (ILO) as a landmark achievement for labour rights and social development.
The Government announced new minimum wage rates on 18 September 2025 during Papua New Guinea's 50th Independence celebrations. The minimum wage will increase from PGK 3.50 (US$0.84) to PGK 5.00 (US$1.20) in 2026, followed by further adjustments to PGK 5.25 in 2027 and PGK 5.50 in 2028.This milestone comes after nearly a decade of minimum wage stagnation and reflects the outcome of a transparent, inclusive, and evidence-based wage-setting process led by Papua New Guinea's Department of Labour.
The process was guided by the re-established Minimum Wages Board (MWB), which brings together representatives of the country's key social partners, including the Papua New Guinea Trade Union Congress (PNGTUC) and the Employers Federation of PNG (EFPNG).The ILO facilitated this process by providing technical support and by facilitating capacity-building.
© ILO
Martin Wandera, ILO Director for the ILO Pacific Island Countries said, "The adoption of Papua New Guinea's new minimum wage is a significant achievement. It reflects the constructive engagement of government, employers and workers and balances workers' needs with prevailing economic conditions. This collaborative process is vital to advancing decent work, social dialogue and sustainable growth."
Nationwide consultations concluded in June 2025 ensured that the new wage rates reflected current living costs and the ability of employers to pay. The process also prioritized gender equality and non-discrimination, recognizing that women are often overrepresented at the bottom of the wage distribution. The wage increase will therefore benefit lowest-paid workers in PNG, helping reduce the gender pay gap and improve the situation of other marginalized low-income groups.
The ILO will continue to partner with PNG to develop a comprehensive Minimum Wages Policy. This aims to institutionalize transparent, evidence-based, and inclusive wage-setting mechanisms to ensure future adjustments adequately reflect economic conditions, living costs and social considerations.
