SAMOA INITIATES MINIMUM WAGE CONSULTATIONS
MCIL Representatives with Upolu (above) and Savaii (below) participants (Photo: Supplied)
In a significant move, Samoa, in collaboration with the Government of Australia through the Tautai Governance for Economic Growth Facility, has initiated consultations for the development of a Minimum Wage Policy. These consultations, conducted on December 6th and 12th, 2023, at the Development Bank in Upolu and Jet Over Hotel in Savaii, mark a crucial step in shaping the economic landscape of the Pacific island nation.
Led by the Ministry of Commerce, Industry, and Labour (MCIL), in conjunction with Consultant Mata’afa Dr. Desmond Amosa, the consultations brought together a diverse array of stakeholders, including representatives from Employers, Workers, Civil Society Organizations, and Government officials. The primary objective was to gather key insights and perspectives, recognizing the complexities involved in establishing a universal minimum wage.
The initiative aligns with the Labour and Employment Relations Amendment Act 2023, which mandates the regular review of Samoa's minimum wage every two years. The consultations emphasize a consultative and balanced approach, aiming to address the challenges of setting a universal minimum wage that takes into account the diverse needs of the population.
The project, scheduled for completion by February 2024, seeks to deliver a comprehensive Minimum Wage Policy defining key parameters at the national level. Additionally, a procedural guideline will be established to operationalize the biennial Minimum Wage reviews, providing a structured framework for future assessments.
The legislative amendments and national policy aim to rectify the ad hoc and irregular review of the national minimum wage. This strategic approach seeks to offer certainty to both businesses and workers, mitigating the need for large and abrupt adjustments to the minimum wage, especially in light of maintaining consumer purchasing power, a critical consideration in the aftermath of high inflation rates post-COVID-19.
Pulotu Lyndon Chu Ling, the Chief Executive Officer of MCIL, expressed sincere appreciation on behalf of Honorable Minister Leota Laki Lamositele for the invaluable support from the Government of Australia. This collaborative effort is not only groundbreaking for Samoa but also serves as a pioneering initiative across the Pacific region, setting the stage for a more inclusive and stable economic environment. As Samoa charts this new course, the Minimum Wage Policy consultations represent a significant stride towards fostering economic growth and prosperity for the nation and its people.