Companies urged to comply with new wage rate

 THE acting general secretary of the East New Britain workers union has urged employers and companies to comply with the new national minimum wage rate.

Patrick Varagat said the revised wage rate had been approved by the National Executive Council and gazetted in the national government.

This followed a recommendation by the Minimum Wages Board to increase the national minimum wage to K3.20 per hour, replacing the previous rate of K2.29 per hour which became effective on January 2010.

Varagat said the new wage became effective from July 3.

He said the new rate of K3.20 per hour was applicable in urban and rural areas, which should be a relief to rural workers who were previously paid at a lower rate than workers in urban areas.

Varagat urged workers to use their wages from the new increases wisely which should assist them to open savings with commercial and micro-finance banks.

He said previously workers found it difficult to save due to the low wages paid to them.

He said the new wages should boost the local economy in the province, especially at this time when cocoa production was low due to the cocoa pod borer. Increased wages should be used to start small medium enterprises and public servants must stand ready to guide and mentor those who wish to start small SMEs, he said.

Varagat said employers should not complain against the new increase on the basis that it was too high.