SICCI urges broad consultation and economic assessment before changes to the Solomon Islands minimum wage
Honiara– Private sector representatives have urged the Government to ensure that any adjustment to the national minimum wage is preceded by broad consultation across all provinces and a thorough assessment of current economic conditions, warning that a poorly calibrated increase could undermine business viability and employment growth.
The recommendations were made during a consultation hosted by the Solomon Islands Chamber of Commerce and Industry (SICCI) on Wednesday, featuring a presentation by Mr. Damisulia O’ota, Deputy Permanent Secretary of the Labour Division at the Ministry of Commerce, Industry, Labour and Immigration (MCILI). The session also included virtual participation from the International Labour Organization (ILO).
While acknowledging the government’s statutory obligation under Section 30 of the Labour Act to review the minimum wage—currently at SBD$8.00 per hour since August 2019—private sector representatives emphasized that the review process must be grounded in a comprehensive and inclusive approach that reflects the diverse realities of businesses and workers across the Solomon Islands.
A key concern raised was the need for meaningful consultation that extends beyond Honiara to capture the unique circumstances of rural and provincial economies. Representatives stressed that the cost of living and business operating environments differ significantly between the capital and outer islands, and these variations must be adequately reflected in any wage determination.
Private sector participants further underscored the necessity of grounding any wage adjustment in a rigorous assessment of the current economic stage and the broader requirements of economic development, as explicitly mandated by ILO Convention No. 131, Article 3. Concerns were expressed that an increase not carefully calibrated to prevailing economic conditions could lead to unintended consequences, including reduced employment opportunities, business closures, and diminished competitiveness for local enterprises—particularly small and medium enterprises that form the backbone of the national economy.
Representatives also called for a genuinely tripartite process wherein the voices of employers are accorded equal weight alongside those of workers and government in the final determination. Transparency and sufficient time for stakeholders to review
data and provide informed feedback were identified as essential elements of a credible consultation process.
Private sector participants affirmed their support for a data-informed approach to wage-setting and recognized the nationwide survey currently being conducted in partnership with the Solomon Islands National Statistics Office and the ILO as a positive step toward establishing a credible evidence base.
However, they stressed that the quality and comprehensiveness of this data—including its reflection of sectoral and regional variations—will be paramount to ensuring a fair and sustainable outcome.
SICCI reaffirmed its commitment to facilitating continued constructive dialogue on this important national issue.
The Chamber looks forward to hosting a follow-up dialogue with the Labour Division and key stakeholders to further discuss the findings of the survey and to ensure that the private sector’s perspectives are fully integrated into the final recommendations to the Labour Advisory Board and the Minister.
SICCI remains dedicated to working collaboratively with the Government of the Solomon Islands, workers’ representatives, and development partners to achieve a minimum wage determination that protects workers, supports families, and fosters a resilient and competitive economy for all Solomon Islanders.
PRESS RELEASE
