In a recent DevPolicy article, Kristi Mahrt and Emily Schmidt (IFPRI) examine how raising the minimum wage could improve the affordability of nutritious foods in Papua New Guinea (PNG).
Using the Cost of a Healthy Diet (CoHD) indicator, they show that the price of a basic healthy diet in urban PNG increased from K7.70 in 2021 to K10.37 in 2025—a 35% rise, outpacing both general and food inflation. Nutrient-dense foods such as vegetables, tinned fish, and fruits have become particularly expensive.
They write, “PNG’s minimum wage has been K3.50 per hour (K28 per eight-hour day) since July 2016. However, prices of food and non-food items have continued to increase over time. Consequently, urban minimum-wage earners in the first quarter of 2025 could purchase one-quarter less food and other goods and services compared to July 2016 — a significant reduction in purchasing power for low wage-earning individuals.”
The authors find that raising the minimum wage to K5 per hour (K40 per day) would restore much of the lost purchasing power, enabling one full-time worker to afford a healthy diet for a family of five while still covering other expenses. This suggests that minimum wage adjustments, alongside targeted tax measures, could play a key role in improving food affordability and nutrition in PNG’s urban areas.
Read the full article here.