Members of the PNG Employers’ Federation are advised that the National Government has now approved and gazetted (effective 29 March, 2006) a variation to the National Minimum Wage and Allowances and declared them to be a Common Rule.

While the Federation and the TUC agreed to the increases some considerable time ago which would have impacted ONLY on Federation members, the Federation insisted, as a condition precedent, that they be declared a Common Rule by the Government before agreeing to implement the change. Effectively therefore, as a Common Rule, the new rates apply to ALL employers in the Country.

The new rates to apply (back dated to 29 March, 06 – date of gazettal) are detailed as follows:

Senior rate	84.5 toea per hour (44 hour week)
Youth rate	63.4 toea per hour (16 and 18 years)
Camping Allowance	80 toea per day.
Tool Allowance	K 1.00 per week
Heavy Duty Allowance	K 3.72 per week.

Effectively these new rates represent increases of:

Senior rate Senior and youth rates	50.7% increase
Camping Allowance	60.0% increase
Tool Allowance	100.0% increase
Heavy Duty Allowance	50.7% increase

With the de-regulation of Wages in the 1992 Minimum Wage Determination, these rates will apply predominantly to the Rural sector and may also impact on the Security Industry. Other applicable rates will have been negotiated as Industry Award rates or by Workplace agreements.

John G. Jeffery
President.
9 June, 2006.