Solomon Islands and ILO Review Minimum Wage Framework

Minister for Commerce, Industry, Labour and Immigration Harry Kuma said the goal extends beyond deciding a wage rate and focuses on creating a stronger process for future wage reviews.

The Solomon Islands Government has begun a review of its minimum wage framework, bringing together employers, workers, government agencies and development partners to discuss how wages can better reflect economic realities while supporting both businesses and employees. The three-day Minimum Wages Setting Workshop, held in Honiara from 9 to 11 June, is being organised by the Ministry of Commerce, Industry, Labour and Immigration (MCILI) in partnership with the International Labour Organisation (ILO).

The workshop aims to strengthen the country's wage-setting system by promoting a more transparent, evidence-based and inclusive approach. Participants are examining how minimum wages can be determined in a way that balances the needs of workers and their families with business sustainability and wider economic conditions.

Minister for Commerce, Industry, Labour and Immigration Harry Kuma said the goal extends beyond deciding a wage rate and focuses on creating a stronger process for future wage reviews. According to Kuma, an effective system should rely on reliable data, include the perspectives of both workers and employers, and provide a predictable framework for future adjustments.

International standards and regional experiences under review

A key part of the discussions involves examining international labour standards and learning from wage-setting practices in neighbouring countries. Participants are reviewing principles contained in ILO Convention No. 131 on Minimum Wage Fixing and Recommendation No. 135, alongside findings from the ILO's 2024 Meeting of Experts on wage policies and living wages. The workshop is also exploring recent minimum wage developments in Papua New Guinea, Fiji and Cambodia to identify lessons that may be relevant for Solomon Islands.

Government officials said future wage decisions should be informed by national evidence, including data from the Household Income and Expenditure Survey and other official economic indicators. The review comes as many countries continue reassessing wage policies in response to rising living costs, changing labour markets and broader economic pressures.

Dialogue aims to balance worker needs and economic growth

Throughout the workshop, participants are discussing a range of factors that influence minimum wage decisions, including household needs, labour productivity, business affordability, economic performance and consultation mechanisms. The event provides an opportunity for workers' organisations, employers' groups and government representatives to develop a shared understanding of how future wage reviews should be conducted.

The ILO reaffirmed its support for Solomon Islands as it works to strengthen wage-setting mechanisms that are fair, transparent and sustainable. Officials say the outcomes of the workshop will help shape ongoing efforts to modernise the country's minimum wage framework and ensure it remains responsive to changing economic and social conditions. The review is expected to contribute to broader goals of promoting decent work, reducing poverty and supporting inclusive economic development while maintaining a balanced environment for businesses and workers alike.