Sawang indicates 2026 labor overhaul: New laws, safety standards, and data-driven reform

Following the successful implementation of a new national minimum wage in 2025, Labour and Employment Minister Kessy Sawang has unveiled an aggressive policy roadmap for 2026 aimed at modernizing Papua New Guinea’s aging labor framework.

The Minister confirmed that the government is moving beyond wage adjustments to address systemic issues in workplace equality, occupational safety, and institutional transparency.

A central pillar of the 2026 policy is the comprehensive review of existing labor laws. Minister Sawang indicated that the ministry will move to strengthen compliance mechanisms to ensure current laws are strictly followed by all employers.

Labour depart will also repeal outdated provisions that no longer align with modern standards of fairness and equality in the workplace.

Sawang will also push to promote 'Decent Work' by balancing fair pay with the need to protect the sustainability of the private sector.

The minister has prioritized the reform of Occupational Safety and Health standards as part of its major shift toward worker protection. She said the policy objective is to ensure that legislative gaps are closed so that workers can return home safely at the end of each working day.

"This focus suggests a likely increase in workplace inspections and stricter penalties for safety violations in the coming year," Sawang said.

To move away from anecdotal policy-making, the Ministry is investing in Labour Market Data and Reporting. This includes; evidence-based policy where new decisions will be informed by reliable data to ensure they are fit for purpose.

Sawang said transparency will be the helm as reforms in labor administration are designed to make institutions more responsive and accountable to both workers and employers.
Recognizing the demographic pressures on the PNG economy, the Minister is prioritizing youth-centric initiatives. This includes: expanding skills development programs to bridge the gap between education and employment. Increasing youth job opportunities through strategic partnerships and dialogue between the government and the private sector.

Minister Sawang’s 2026 agenda represents a shift toward a high-productivity economy. By focusing on "modernizing" rather than just "managing," the Ministry intends to create a labor market that protects the vulnerable while enabling enterprises to thrive.