PNG-AFNP Quarterly Newsletter July 2025

Declining purchasing power of minimum wages in Papua New Guinea - analysis of economic access to healthy diets: PNG’s minimum wage has remained fixed since July 2016 (PGK 3.5 per hour or PGK 28 per 8-hour day), however, the cost of living increased by 41 percent from July 2016 and March 2025. Using the food price data collected by the Fresh Produce Development Agency across six urban markets, this study compares the cost of a nutritious food basket with the PNG minimum wage over time to evaluate individual and household economic access to healthy diets. Overall, the daily cost of a healthy diet per adult in urban areas increased by 35 percent from PGK 7.70 in 2020 to PGK 10.37 in 2025. The daily cost of a healthy diet is greatest in Port Moresby (PGK 11.15) and increased the most in Kokopo, with a 54 percent rise between 2021 and 2025. On average, a minimum wage earner would need to spend 35 percent of their daily wage to purchase a healthy diet for one adult compared to 27 percent in 2021. Exploring the impact of the recent Internal Revenue Commission’s policy (implemented in June 2025) on eliminating GST on essential goods, including rice and tuna, the average healthy diet cost in the first quarter of 2025 would have fallen by 4.7 percent from PGK 10.35 to PGK 9.87, implying a slight improvement in purchasing power of minimum wage earners.

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