SICCI calls for an evidence-based minimum wage review balancing worker welfare and business sustainability
Honiara, Solomon Islands – The Solomon Islands Chamber of Commerce and Industry (SICCI) has reiterated its call for a balanced and evidence-based approach to the upcoming minimum wage review process, emphasizing the need to consider both worker welfare and the realities of operating a business in Solomon Islands.
Speaking following the three-day Minimum Wage Setting Workshop, SICCI acknowledged that the current national minimum wage rates have remained unchanged since 2019 and noted the importance of periodic reviews to ensure wages remain relevant to prevailing economic conditions.
While SICCI supports the review process, the Chamber strongly urges that any adjustment to the minimum wage be informed by comprehensive economic data and take into account the increasing costs faced by businesses across the country.
SICCI Chief Executive Officer, Mr. James Dolarii, emphasized that meaningful wage-setting decisions must be underpinned by reliable and up-to-date information.
“Any adjustment to the minimum wage should be based on sound evidence that reflects both the cost of living for workers and the capacity of businesses to absorb increased labour costs,” Mr. Dolarii said.
He called on relevant authorities to strengthen and improve data collection mechanisms to ensure future wage decisions are grounded in economic reality. He also stressed the need for data collection to be timely and routine, noting that the last Household Income and Expenditure Survey (HIES) was last conducted in 2011, 15 years ago.
Mr. Dolarii also highlighted the importance of stronger compliance and enforcement by the Labour Division to ensure that all employers adhere to labour laws and regulations.
“Without effective enforcement, wage adjustments risk creating an uneven playing field where compliant businesses bear additional costs while non-compliant operators continue to evade their obligations,” he said.
As part of its ongoing commitment to constructive engagement, SICCI—on behalf of the private sector—has nominated four private sector representatives to serve a two-year term on the Labour Advisory Board. The appointments will help ensure that business perspectives are effectively represented in discussions on national labour policies and reforms.
To assist businesses in preparing for any future changes, SICCI also proposed a practical implementation window, calling for a six-month to one-year transition period to allow for phased implementation and enforcement following the announcement of the gazetted minimum wage rate.
The Chamber noted that such a transition period would provide businesses, particularly small and medium-sized enterprises, with sufficient time to undertake budgetary planning and operational adjustments.
Looking ahead, SICCI will host a dedicated private sector consultation session on the minimum wage review process on 2 July 2026.
The session will provide an opportunity for businesses to share their views on the impact of wage policies on operations, competitiveness, employment, and long-term sustainability.
SICCI encourages all interested members to participate and contribute to a constructive dialogue aimed at achieving fair, practical, and sustainable wage outcomes that support both workers and businesses in Solomon Islands.
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