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What Is the Minimum Wage, and When Are Wages Not Payable?

The Employment Act does not set a figure. It says your wages must be not less than those provided for by registered awards relevant to you — and it names two situations in which no wages are payable at all.

The employment law series, no. 31 · Wages and their protection · 5 min read

Part V of the Employment Act (Chapter 373) is headed Payment and Protection of Wages. It opens with two short sections that set the floor and the exceptions.

Section 76 — wages not less than the award

Section 76

(1) The wages payable to an employee shall be not less than those provided for by registered awards relevant to the employee.

(2) The minimum rates of remuneration for piece-rate work shall be not less than those provided for by registered awards relevant to that work.

So the Act itself contains no kina figure. It incorporates by reference whatever a registered award provides. Awards are made and registered under the Industrial Relations Act, read with the amending Acts of 1991 and 1998. Section 6(b) of the Employment Act preserves the operation of awards in force at its commencement.

The national minimum wage itself

The national minimum wage in Papua New Guinea is fixed by determination of the Minimum Wages Board, which sits periodically and publishes a determination. The determination is the operative document; the Employment Act is the mechanism that makes it binding on an individual contract, together with section 11(4), under which any contract term paying less is void to that extent.

The Minimum Wages Board’s constituting legislation and its determinations are not carried in the PacLII Papua New Guinea databases. We name them here rather than give an unverified link; the current determination should be obtained from the Department responsible for labour and industrial relations.

How the floor interacts with the rest of the Act

The layers that set what must be paid
LayerEffect
Minimum Wages Board determinationSets the national minimum rate
Registered award for the occupation or industryMay set a higher rate, and other conditions — s 76
The contractMay give more than the award or the Act
Section 11(4)Any term less favourable than the Act is void to that extent
Section 14(g)The total wage and the deductions must be disclosed at hiring
Section 21(1)Those particulars must appear in the contract

The overtime provisions build on the same base: the hourly rate for overtime, stand-by and call-out is derived from the wage under section 52(4).

Section 77 — when no wages are payable

Section 77 — an employee is not entitled to be paid wages for any period during which he is

(a) imprisoned under any law or otherwise detained in lawful custody; or

(b) absent without leave or without reasonable excuse.

Both limbs need care.

  • Paragraph (a) removes the wage for the period of custody. It does not terminate the contract. Separately, section 36(1)(a)(v) permits summary dismissal where an employee is imprisoned for a period exceeding seven days — so a shorter period of custody costs the wage but is not a ground for dismissal under that paragraph.
  • Paragraph (b) requires the absence to be without leave and without reasonable excuse. An absence with a reasonable excuse is still paid.
The link to sick leave

Under section 65(4), an employee who is absent on sick leave without producing an acceptable medical certificate and without informing or attempting to inform the employer within 72 hours is deemed to be absent without permission and without reasonable excuse. That deeming feeds straight into section 77(b), and into section 36(1)(a)(vi) on continual absence.

The practical protection is simple: make the attempt to notify, and record that you made it.

Section 77 is not a deduction power

Section 77 says wages are not payable for a period. It does not authorise an employer to take money already earned. Recovering past earnings requires a lawful deduction under section 88, with prior written consent and within the 50% cap; and under section 94 an employer who imposes a fine of any kind on an employee commits an offence carrying a fine up to K500.00.

Under section 96(c), making deductions other than those authorised by Part V is itself an offence.

Proving your rate

  1. The contract, or for an oral engagement the section 15(1) record. If the employer has no record, your statement of the terms is conclusive under section 15(2) unless it satisfies the Secretary or an Arbitration Tribunal otherwise.
  2. The section 82 pay statements, which must show gross ordinary wages, overtime, extras, deductions with reasons, the net amount and the pay period.
  3. The section 83 wages register, open to inspection by a labour officer.
  4. The registered award for your occupation.
  5. The current Minimum Wages Board determination.
If you are being paid below the floor

Ask in writing which award and rate the employer says applies — section 138 makes it an offence to refuse information reasonably required by an employee, or to penalise them for asking. Then take the answer to a labour officer. Section 96 makes underpayment an offence, and section 145 allows the Secretary to institute proceedings and to appear on your behalf in your own civil claim.

Sources

Check the section yourself

Before relying on anything here, read the current text of the Employment Act (Chapter 373) and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.

Disclaimer: This article provides general information about Papua New Guinea law and does not constitute legal advice. Laws may change, and their application depends on individual circumstances. You should obtain professional legal advice for your specific situation. Read the full disclaimer.