New minimum wage to take effect in 2026

Papua New Guineans will receive a pay rise in the new year, following the announcement of a new minimum wage rate by the Minimum Wage Board.

From January 1, 2026, the national minimum wage will increase from K3.50 to K5.00 per hour, a boost of K1.50.

The new rate will continue to rise by 25 toea annually, reaching K5.25 in 2027 and K5.50 in 2028.

Minimum Wage Board Chairlady Bevely Doiwa confirmed the new rates will be officially gazetted and enforced starting next year.

She said the decision followed a comprehensive review guided by the 2024 Minimum Wage Board terms of reference and was based on balancing workers’ welfare with business sustainability.

“The increase is the outcome of an exhaustive and consultative process that involved public hearings in 20 locations nationwide across 2024 and 2025,” Doiwa said.

She added the new rate would bring much-needed relief to workers and their families, ensuring a fair and just wage that reflects today’s economic realities.

“This is not a unilateral decision. It is a product of collaboration and consultation with all stakeholders,” Doiwa said.

The new minimum wage comes as welcome news for workers who have long awaited relief from rising living costs, while also placing greater emphasis on businesses to adapt to the new wage structure.