A consultation on a new minimum wage policy to guide the review of Samoa’s minimum wage every two years has concluded and passed on to the Cabinet for consideration. 

The assignment was carried out by the Ministry of Commerce Industry and Labour (M.C.I.L.) and the Samoan National Tripartite Forum (S.N.T.F.) from December and wrapped up this month. 

The focus area during the discussion that was taken to Savaii and in Upolu was a minimum wage policy establishing key parameters at the national level and a procedural guideline that will operationalise the review every two years.  

The Chief Executive Officer for M.C.I.L., Pulotu Lyndon Chu Ling said the Labour and Employment Relations Amendment 2023 effective in February included a crucial amendment for the minimum wage to be reviewed every two years. 

In an interview with the media, Pulotu said reacting to complaints from people on minimum wage is not the way to go about it. 

He said the change in the law to fix a review on minimum wage every two years is a step in the right direction instead of waiting until issues surface. 

“If the review is for every two years there is that spirit and awareness from employers and workers that it gets reviewed and to prepare for it instead of taking them by surprise,” said Pulotu. 

“Another part of the consultation which I will not go into details, the review will be based on data from the Samoa Bureau of Statistics on the state of the economy, cost of living, and other factors…that will assist on how much the increment will be but we also take into account that if we do use such formula it would be affordable and an increase will have a big impact on the employers so the work also has to look on that side for business.” 

According to the C.E.O., if the minimum wage is based on the cost of living and if the business sector will be able to afford it but generally the review is to have an increment and is ongoing. 

The current minimum wage is SAT$3 per hour and was last raised in 2020. 

Pulotu pointed out that although this is the minimum wage most workplaces pay way above the minimum. 

Officials sitting on the S.N.T.F. comprise representatives from the workers' union, employers, and the Government, and chaired by M.C.I.L. 

The recommendation from the forum on the minimum wage policy has been submitted to the Cabinet for their consideration and endorsement.