Removing Dual Salary Structure Will Increase PNGn Workers Buying Power

It was good seeing and reading in the Post Courier article of 14th February 2025 about the PNG Banks and Financial Institutions Workers Union calling for the removal of the 'colonial' Dual Pay Salary Structure.

This legality of dual salary structure is a hinderance to us PNGns inheriting the wealth of our country. We Papua New Guineans can be generally classified as a shy and timid people and to inherit the wealth of our country we are urged to be more assertive, not more arrogant. But disparities in pay for the same work done and this legal dual pay structure around salaries is proving to be an unjust obstacle.

In all fairness, it is the value of work that must be proportionated to the industry and results and this is what Bernard Narokobi said. “It is the value of work output that must count, not race. If we are really equal to others and are making a much greater contribution, than why shouldn’t we get more than outsiders? Similarly, outsiders who are contributing more than Papua New Guineans should get more. It is pure racism to argue that Papua New Guineans need less because we have always had less.”

We PNGns too envy and aspire for the better quality of life enjoyed in other well of countries. But just because we are used to having less and the local labour market is taking advantage of that, this does not mean PNGns should be paid less. Compensation and remuneration should go with the value of work output. Those who produce more should be paid more and not limited by a prejudice colonial law on salaries that determines the local labour market dual salary category and rates. When you pay a PNGn the same as their expatriate colleagues doing the same work, you will directly lift up the 5+ fellow citizens that they support above the poverty line. But too often we listen to neo-colonialist institutions which sugar coat the state of our economy from the top down without bravely confronting such obvious high value low hanging easy wins as removing this policy on dual salary system.

Removing dual salary will go a long way to put more money in the hands of PNGns and increase PNG workers buying power (plus GoPNG gets increase flow of revenue into its coffers due to high personal income tax from high salaries). It will put back cash in the hands of the PNGn workers, who are the significant few that pay PIT to support the bulk of our population, but most importantly and from an economy management perspective, the additional money in the hands of PNGn workers will go to increase our buying power and increase our consumer spending.

In economics, consumer spending contributes to aggregate demand or total spend into the economy. The economy does not loss by putting back money into the hands of us, the significant few PNGn workers. The additional cash in the hands of PNGn workers, we will then spend into the economy and becomes part of the consumer spending into the economy. This spending is part of injections into the circular flow of cash that power on the economy. Those making decisions must understand the grander business economics which will give them the justification and assurance to make this bold decision and take action to remove this dual pay colonial structure.

In fact, in a collectivist society such as ours, PNGn workers are kings and queens of charity. Even the increase cash we will get does not stay only with us but is spread thin across our extended families and relatives. These people, our extended families and relatives, happen to be the very people our government is set up and we pay taxes to so they can be served by the people-centered GoPNG.

GoPNG's concern about not able to serve its people with mounting debt can be offset by removing dual salary system. Removing dual salary is what should be making a real difference directly to the lives of the employees and PNGns. This action is one of three actions that will put money into the hands of the people to spend into the economy and help in keeping afloat our economy.