[Papua New Guinea] Minimum wage increase now in effect

In Papua New Guinea, a new minimum wage rate has come into effect. The rise follows the Minimum Wages Board’s (MWB) December announcement of a series of phased minimum wage increases beginning January 2026, PNG Recruitment Box reports.

The minimum wage rate rises are the first adjustment since 2016. They come after a comprehensive nationwide review.

Following the 2024-2025 Minimum Wage Determination, the MWB, in conjunction with the Department of Labour, reportedly approved the following wage increases:

• January 1, 2026: K5.00 per hour, rising from the current K3.50 rate

• January 1, 2027: K5.25 per hour

• January 1, 2028: K5.50 per hour

The increases will be rolled out progressively over three years to allow businesses, including SMEs, time to adjust.

The reasons the Minimum Wages Board cited for the adjustment were:

• Rising cost of goods and services: Inflation over the past decade has eroded the purchasing power of low-income earners in the country, making essentials harder to afford.

• Restoring purchasing power: Wages have remained stagnant since 2016. The Board emphasised the necessity of increasing wages to help workers manage current economic challenges.

The phased approach aims to balance support for workers while preventing sudden financial burdens on employers.

The 2026-2028 wage increases are reportedly among the most significant changes to Papua New Guinea’s labour standards in nearly ten years. Minimum wage earners will see meaningful financial relief amid rising living costs, and employers will benefit from a staggered implementation allowing for planned adaptation.

Source: PNG Recruitment Box

In Papua New Guinea, a new minimum wage rate has come into effect. The rise follows the Minimum Wages Board’s (MWB) December announcement of a series of phased minimum wage increases beginning January 2026, PNG Recruitment Box reports.

The minimum wage rate rises are the first adjustment since 2016. They come after a comprehensive nationwide review.

Following the 2024-2025 Minimum Wage Determination, the MWB, in conjunction with the Department of Labour, reportedly approved the following wage increases:

• January 1, 2026: K5.00 per hour, rising from the current K3.50 rate

• January 1, 2027: K5.25 per hour

• January 1, 2028: K5.50 per hour

The increases will be rolled out progressively over three years to allow businesses, including SMEs, time to adjust.

The reasons the Minimum Wages Board cited for the adjustment were:

• Rising cost of goods and services: Inflation over the past decade has eroded the purchasing power of low-income earners in the country, making essentials harder to afford.

• Restoring purchasing power: Wages have remained stagnant since 2016. The Board emphasised the necessity of increasing wages to help workers manage current economic challenges.

The phased approach aims to balance support for workers while preventing sudden financial burdens on employers.

The 2026-2028 wage increases are reportedly among the most significant changes to Papua New Guinea’s labour standards in nearly ten years. Minimum wage earners will see meaningful financial relief amid rising living costs, and employers will benefit from a staggered implementation allowing for planned adaptation.

Source: PNG Recruitment Box