Starting today, employers in the Cook Islands must comply with a new minimum wage rate. The wage has been raised from $9.00 to $9.50 per hour (US$5.47 to US$5.77), offering an added $20 (US$12) weekly to minimum wage earners.
The Cabinet approved this new minimum wage in May after a review and report by the Minimum Wage Review Panel. According to an announcement from the Ministry of Internal Affairs last night, employers must ensure they are complying with this new rate and are expected to adjust their payroll systems accordingly.
This wage increase emerged from an annual review, as set out by the Employment Relations Act 2012. A five-member Minimum Wage Review Panel — including representatives from the Ministry of Internal Affairs, the Ministry of Finance and Economic Management, the Cook Islands Workers Association, the Chamber of Commerce and a community representative — comprehensively evaluated the Cook Islands’ wage landscape. However, the panel’s report has not been publicly released.
The panel, in agreement with the Chamber of Commerce, accepted the wage increase, considering its impact on the cost of living, the Government’s payroll and the private sector. Helen Maunga of the Cook Islands Workers Association expressed hope for a more significant wage increase in the future.
Prime Minister and Finance Minister Mark Brown announced that this 50-cent hourly increase for government workers will cost an additional $1.3 million (US$790,000) over a four-year period.