Wages Polic in Papua New Guinea

Abstract

This article outlines the main developments in the area of wages policy in Papua New Guinea over the last ten years and describes some of the major influences on minimum wage determinations during this period. Between 1967 and 1970 wages changed little. Since that time while the minimum wage in the larger urban areas has increased by over 100 per cent in real terms the real minimum wage of those engaged in primary industry—the vast majority of rural wage earners, most of whom work on plantations—has increased much less. The rural-urban wage gap has thus widened markedly. At the same time differentials for skill have been considerably reduced.