Cabinet to decide on the Minimum Wage Review Report

By Lagi Keresoma

Apia, SAMOA – 02 May 2024: Cabinet has yet to decide on the Minimum Wage Review Report now before them.

The review was conducted by the Ministry of Commerce, Industry & Labour (MCIL) and the Samoa National Pantheid Forum (SNPF) in the past few months.

The SNPF is comprised of four members representing the employers, employees and Government.

The Chief Executive Officer of the MCIL, Pulotu Lyndon Chu Ling confirmed the report is now with Cabinet for their decision.

“Once Cabinet makes a decision then we will make a public announcement,” said Pulotu.

Review every 2 years
Pulotu also confirmed that based on the new amendment to the Labour Act 2024, the minimum wage will now be reviewed every two years.

He said the amendment is good as this will avoid a sudden reaction from businesses.

“Business and employers only reacted when a complaint is filed and it is not good, but with the consistent two year period for review now in place, business will know and be prepared in advance,” he said.

Guidelines are now in place to assist MCIL and SNPF in their reviews.

“The SNPF is important because it represents four members each from the employers, employees and Government,” he said.

He also said the two-year review does not mean there would be an increase in wages every two years.

“It is not straightforward as while there is a notion for a pay rise, we also need to consider the ability of businesses and employers to pay, so there should be balance between the two,” said Pulotu.

A balance reviews
Pulotu also said one cannot compare the Government to the private sector because the Government has a budget whereas the private sector relies on their own with a small assistance from the Government.

He confirmed that there are businesses who pay much more than the minimum wage to their employees.

Pulotu said consultation between MCIL and SNPF over the minimum wage is never an easy task and both parties have to agree on something that benefits both.

“After a review, it is either an addition or increase to the minimum wage or nothing until the next review, both have to agree,” said Pulotu.

He did not disclose any percentage or amount the Committee agreed upon as the report is now with Cabinet for a decision.