Minimum Wage: Have Companies And Businesses Ignored 2014 Increase of K1.00 For Low Income Earners?

 Minimum Wage was raised from K2.20 to K3.20 in 2014. The increase was recommended by Employers Federation and Salary Commission and endorsed by a Parliamentary Working Committee on wages and salaries. Every employer must comply with the parliamentary directive as of 2014.  

There is also little known about employees’ benefits and how those benefits tie in with minimum wages. Unless employees are made aware of this by their employers, there is no reason why employees would get less than recommended minimum wage or salary.

If you are an adult, working fulltime (or Part-time) and know that you are among the minimum wage earners you should make sure that your hourly pay is NOT less than K3.20. Here is a table to help you.

In 2014 the Employers Federation and Salary Commission (EF&SC) conducted a 7-month investigation into wages and salaries of middle (to low) income earners in Papua New Guinea. They made several recommendations. One of the recommendations was to increase the minimum wage from K2.20 to K3.20

The EF&SC (who made the recommendation) or Employers Federation of Papua New Guinea (EFoPNG – who are supposed to inspect and ensure minimum wage is paid to workers) came out trumpeting that the increase must be complied with ‘immediately’ at the time of the announcement. 

Question of ‘compliance’ must be answered clearly. This can be done by government organisations responsible for ensuring workers are paid what they deserved. Right now there is a need to determine if companies have complied with government’s directive. But, who is going to do it?

If the Workers’ Union president is looking for something better to do, here is one thing he can do: call on EFoPNG to do its job. The employers’ federation has 22 inspectors stationed in every province. Have they done what they are supposed to do yet? 

What is the Department of Internal Revenue and Taxation done to make sure the K1.00 increase is paid to the low income earners? Their audit has to show how many minimum wage earners are employed by each company and how much they are paying them. 

Statutory organisations, who are supposed to put the interest of low income earners first, have got to do their jobs and continue to do it right. Companies and businesses who have not complied with the Minimum Wage increase must be reminded to remain true to their workers – pay them accordingly.  

Organisations like the Workers Union, Employers Federation of Papua New Guinea, Employers Federation and Salary Commission, Internal Revenue Commission and Department of Internal Revenue and Taxation MUST do what is right. 

It would be criminal – it is criminal, on both the government organisations and companies, if they failed to enforce the new minimum wage or failed to comply with it. Responsible authorities must follow up and ensure the minimum wage (K3.20) set in 2014 is paid to every eligible earner in the country. 



1. SECURITY FIRMS
2. LOGGING AND FISHING COMPANIES
3. CHINESE KAI BARS AND RESTAURANTS 
4. RETAIL OUTLETS AND WHOLESALE 
5. CONSTRUCTION AND SUB-CONTRACTORS 
6. PLANTATIONS 
7. NIGHT CLUBS 
8. FARMS
9. FACTORIES 
10. HOTELS

No comments: