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Papua New Guinea - Compensation & Benefit Legislation

CAPITAL

Port Moresby

 

CLIMATE

Tropical climate; northwest monsoon (December to March), southeast monsoon (May to October); slight seasonal temperature variation.

 

LANGUAGES

English spoken by 1%-2%, pidgin English widespread, and Motu spoken in Papua region. (Special note: 715 indigenous languages.)

 

LEGAL SYSTEM

Papua New Guinea’s legal system is based on English common law.

 

CURRENCY

Papua New Guinea Kina (1 USD = 3.43053 PGK as of May 15, 2002).

 

PAPUA NEW GUINEA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

PAPUA NEW GUINEA - EMBASSY/CONSULATES

U.S. Embassy at Port Moresby

Douglas Street

Port Moresby, Papua New Guinea

P. O. Box 1492

Port Moresby, Papua New Guinea

Telephone: (675) 321-1455

Fax: (675) 321-1593

 

Embassy of Papua New Guinea at Washington D.C.

1779 Massachusetts Avenue, NW

Washington D.C. 20036

Telephone: (202) 745-3680

Fax: (202) 745-3679

http://www.pngembassy.org

 

PAPUA NEW GUINEA - HOLIDAYS

 

PAPUA NEW GUINEA - LEAVE

Maternity Leave: Six weeks unpaid leave.

 

PAPUA NEW GUINEA - MINIMUM AGE

The Employment Act establishes the minimum working age as 18. However, children between the ages of 11 and 18 may be employed in a family-related business or enterprise provided they have parental permission, a medical clearance, and a work permit from a labor office. This type of employment is rare, except in subsistence agriculture.

 

(Section 6.d. Acceptable Conditions of Work, Papua New Guinea – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

PAPUA NEW GUINEA - MINIMUM REMUNERATION

Minimum wages for the private sector are set by the Minimum Wage Board, a quasi-governmental body with labor and employer representatives. The minimum wage for newly hired urban workers is the same as the minimum wage for rural workers.

 

The adult minimum wage is 22.96 kina per week (approximately $9.87). The national youth wage, for new entrants into the labor force between 16 and 21 years of age, is set at 75 percent of the adult minimum wage.

 

During 2001, the Minimum Wage Board recommended a large increase in the minimum wage, but the Government blocked the increase, and no increase was implemented.

 

(Section 6.e. Acceptable Conditions of Work, Papua New Guinea – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

PAPUA NEW GUINEA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

PAPUA NEW GUINEA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The law provides for the right to form and join labor unions, subject to registration by the Department of Industrial Relations. The Government does not use registration to control unions. However, an unregistered union has no legal standing with the Department of Labor and Employment or before the courts and thus cannot operate effectively. About half of the 250,000 wage earners in the formal economy are organized and are members of approximately 50 trade unions. Most of the unions representing private-sector workers are associated with the Trade Unions Congress. The Public Employees Association represents an estimated 23,000 persons employed by national, provincial, and municipal governments, or one-third of the public sector work force. Unions are independent of the Government and of political parties.

 

There were no government efforts to hinder either public or private sector unions from exercising their right to strike. The law prohibits retaliation against strikers; however, it is not enforced always. Employees of some government-owned enterprises went on strike on several occasions this year, primarily to protest against privatization policies. These strikes, such as the action against the PNG Banking Corporation, in August were brief and ineffective.

 

Unions may affiliate freely with international organizations, and they have done so.

 

b. The Right to Organize and Bargain Collectively

 

The Constitution provides for the right to engage in collective bargaining and to join industrial organizations. These rights are exercised freely. Under the law, the Government has discretionary power to cancel arbitration awards or declare wage agreements void when they are contrary to government policy. This law was criticized by the International Labor Organization (ILO). The law prohibits antiunion discrimination by employers against union leaders, members, and organizers; however, it is selectively enforced. The Department of Industrial Relations and the courts are involved in dispute settlement. Wages above the minimum wage are set through negotiations between employers and employees or their respective industrial organizations.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution forbids slavery and all forms of forced, compulsory, or bonded labor, including that performed by children, and there were no reports that such practices occurred.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Employment Act establishes the minimum working age as 18. However, children between the ages of 11 and 18 may be employed in a family-related business or enterprise provided they have parental permission, a medical clearance, and a work permit from a labor office. This type of employment is rare, except in subsistence agriculture.

 

The Government has not ratified ILO Convention 182 on the worst forms of child labor. It has no comprehensive policy on the problem; however, child labor other than in family subsistence agriculture or enterprises is rare.

 

Forced and bonded labor by children is prohibited and is not known to occur.

 

e. Acceptable Conditions of Work

 

Minimum wages for the private sector are set by the Minimum Wage Board, a quasi-governmental body with labor and employer representatives. The minimum wage for newly hired urban workers is the same as the minimum wage for rural workers. The national youth wage, for new entrants into the labor force between 16 and 21 years of age, is set at 75 percent of the adult minimum wage. The adult minimum wage of $9.87 (22.96 kina) per week does not provide a decent standard of living for a worker and family who live solely on the cash economy. During the year, the Minimum Wage Board recommended a large increase in the minimum wage, but the Government blocked the increase, and no increase was implemented. Although the Department of Labor and Employment and the courts attempt to enforce the minimum wage law, enforcement is not effective due to a lack of resources. Minimum wage levels, allowances, rest periods, holiday leave, and overtime are regulated by law. The law limits the workweek to 42 hours per week in urban areas and 44 hours per week in rural areas. The law provides for at least one rest period of 24 consecutive hours every week; however, enforcement is lax.

 

Enforcement of the Industrial Health and Safety Law and related regulations is the responsibility of the Department of Labor and Employment. The law requires that work sites be inspected on a regular basis; however, due to a shortage of inspectors, inspections take place only when requested by workers or unions. Workers' ability to remove themselves from hazardous working conditions varies by workplace. Unionized workers have some measure of protection in such situations.

 

Legal foreign workers are protected by law. There are very few illegal foreign workers, and they lack full legal protection.

 

f. Trafficking in Persons

 

While the Constitution does not prohibit trafficking in persons, there is no evidence that persons were trafficked to, from, or within the country. However, in 2000 and during the year, the Government investigated allegations of corruption among officials dealing with passport issuance and immigration. These allegations centered on the organized circumvention of immigration controls; however, there were no results from the investigations. Nevertheless there is concern that the country may be used as a route for the trafficking of illegal immigrants to Australia.

 

PAPUA NEW GUINEA - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

PAPUA NEW GUINEA - STANDARD WORKWEEK

The law limits the workweek to 42 hours per week in urban areas and 44 hours per week in rural areas. The law provides for at least one rest period of 24 consecutive hours every week.

 

(Section 6.e. Acceptable Conditions of Work, Papua New Guinea – Report of Human Rights Practices, 2001, U.S. Department of State.)