The report, Minimum Wage Systems and Wage-Setting Practices in the Pacific Island Countries, was produced in collaboration with the Massey Business School and provides the first comprehensive review of minimum wage systems and wage-setting practices across the region.
Massey Business School’s Professor Jim Arrowsmith, Professor Jane Parker and Dr Salman Rashid worked alongside International Labour Organisation (ILO) specialists to analyse wage-setting frameworks and policy challenges in Pacific nations including Fiji, Samoa, Tuvalu and Vanuatu. Their work contributes to the ILO’s broader goal of promoting decent work and fair pay worldwide.
Professor Arrowsmith says the research highlights both progress and persistent challenges.
“Many Pacific countries have taken important steps to improve minimum wage systems, but limited enforcement capacity, data gaps and weak social dialogue continue to undermine their effectiveness. Addressing these issues is essential if wages are to keep pace with living costs, vulnerable workers are protected, and employers have a fair and predictable business environment.”
The report calls for countries to develop comprehensive national wage policies linked to employment and social protection strategies, and to strengthen the institutional capacity of labour ministries, wage boards and statistical agencies. It also urges regular, transparent review cycles and greater collaboration between governments, employers and trade unions.
Professor Parker says the partnership reflects Massey’s growing role in international research addressing equity and wellbeing.
“Our work with the International Labour Organisation provides evidence-based insights to support fairer and more resilient labour markets across the Pacific. It’s about ensuring wage systems promote not just economic growth, but social justice.”
Co-author Dr Rashid adds that improving wage-setting systems is central to achieving the United Nations’ Sustainable Development Goals in the Pacific.
“A well-designed minimum wage can help reduce inequality and encourage inclusive growth, especially for workers in low-income and informal sectors.”
Minimum Wage Systems and Wage-Setting Practices in the Pacific Island Countries
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