The Ministry of Commerce, Industry and Labour in partnership with the Government of Australia through the Tautai Governance for Economic Growth Facility, has commenced consultations on the development of a Minimum Wage Policy. This will guide the review of Samoa’s Minimum Wage every two years as required under the Labour and Employment Relations Amendment Act 2023.
Consultations were held at the Development Bank in Upolu and Jet Over Hotel in Savaii. Led by MCIL with support of Consultant Mata’afa Dr. Desmond Amosa, key insights and perspectives were gathered from participants representing Employers, Workers, Civil Society Organizations and Government.
Recognising the complexities of setting a universal minimum wage, the Ministry with its partners place high importance on taking a consultative and balanced approach. The assignment is targeted for completion by February 2024 with the following deliverables:
- A Minimum Wage policy establishing key parameters at the national level; and
- A procedural guideline which will operationalize the Minimum Wage review every two years.
The legislative amendments and national policy aim to address the ad hoc and irregular review of the national Minimum wage. This in turn will provide more certainty to both businesses and workers and avoid large adjustments to the Minimum Wage in attempts to maintain purchasing power of consumers. This is important given the high inflation rates post COVID-19.
The Chief Executive Officer of MCIL, Pulotu Lyndon Chu Ling expresses sincere appreciation on behalf of the Honorable Minister Leota Laki Lamositele for the support of the Government of Australia in enabling this important work which will be the first of its kind not only for Samoa but across the Pacific.
