BY TONY IROGA
Government has begun a long-awaited review of the country’s legal minimum wage, with nationwide surveys being conducted to gather data that will help determine a new wage rate.
The review, led by the Labour Division under the Ministry of Commerce, Industry, Labour and Immigration, is taking place across all provinces, with surveys in Honiara scheduled for completion later this month.
Commissioner of Labour Brown Pwai confirmed the development in an interview with SIBC News yesterday describing the review as an important step toward ensuring wages reflect the current economic realities faced by workers and employers.
Mr Pwai said the next phase of the process will commence once data collection in Honiara is completed.
“The Solomon Islands National Statistics Office and the International Labour Organization (ILO) will work with the Labour Division to analyse the data and produce reports that will help determine the next minimum wage rate,” he said.
The current minimum wage was introduced in August 2019 and was due for review two years later. However, the review process was delayed due to a number of challenges and limitations.
With six years having elapsed since the last review, there is growing public interest in the outcome, particularly as households continue to face increasing living expenses.
Mr Pwai acknowledged that the cost of living has risen significantly in recent years.
“Costs associated with transport, education and nutrition have all increased. The Household Income and Expenditure Survey also indicate increases in these areas,” he said.
Despite these trends, he stressed that any decision on a new minimum wage must be based on evidence gathered through the survey process.
“However, we must wait until all the data is available and the analysis is completed,” Mr Pwai added.
According to the Commissioner, the declaration of a new minimum wage will depend on the completion of the data analysis and recommendations made by the Labour Advisory Board in accordance with the country’s labour regulations.
The board will then advise the Minister responsible for Labour on an appropriate minimum wage rate before any official announcement is made.
Photo credit: SIBC
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