By Losirene Lacanivalu, Cook Islands News
New Zealand banknotes, pen and calculator on background with rising trend green line Photo: 123RF
Cook Islands will increase its minimum wage by 50 cents to $10 per hour, a change welcomed by some workers and expats but considered insufficient by others and potentially impactful for small tourism businesses facing rising costs.
The Cook Islands' minimum wage will increase by 50 cents, from $9.50 to $10 per hour, effective 1 July 2025.
While some welcome the change, others argue it's insufficient given the rising cost of living, including soaring rental and food prices.
The Cook Islands Tourism Industry Council notes that smaller businesses may feel the impact of this increase.
The Employment Relations (Minimum Rate of Pay) Regulations, signed by the King's Representative on 15 April, approved the proposed increase.
The new minimum wage was proposed following the annual review mandated by the Employment Relations Act 2012.
Two Cook Islands teenagers, who wished to remain anonymous for job security reasons, believe the minimum wage should be higher to reflect the current cost of living.
The 19-year-old worker, who earns $9.50 an hour, has welcomed the 50-cent increase but believes, "personally, I should be getting paid more considering I work part time and they expect us to do the work of a full-time worker".
"I personally think we should get paid more than the minimum wage."
An 18-year-old, working in a government department, says, "Depending on the living expenses, if prices for cost-of-living increases then minimum wage should also increase."
"Pushing to $10, adding $0.50 from the previous $9.50, is okay I guess but it heavily depends on where you are working as well. If it includes heavy labour then it should be more than 10 bucks an hour."
Cook Islands Fijians Association vice president operations Ravinesh Swamy said that while the association welcomes the 50-cent increase, its impact as a boost needs to be evaluated in comparison to the cost of living, particularly concerning rental accommodations.
Expat worker Waqa Naitini welcomed the increase, stating that it was much needed as "the cost of goods and services has increased too".
"Rental homes (rents) have increased too compared to two years ago, the minimum wage increase is welcomed," Naitini said.
The Filipino community president Grace Scheel says if the government has considered 0.50 cents increase then we do accept and respect this new law.
"However, if you go shopping and the cost of commodities is spiralling up, the $20 extra income on their weekly pay is not enough to cover these extra costs. The workers should tighten their belts in spending here to enable them to send money to their family back home at the same time," Scheel said.
She added that the minimum rate of $12 was a suggested amount, and business owners or employers would then have to increase the prices of their products and services to cover the wage increase.
"So, it's kind of a relative increase in price/commodities."
Cook Islands Tourism Industry Council president Tere Carr said the new minimum wage rate would have little impact on most large private sector operators, who she expects are already paying $10 or more per hour.
"However, some of our smaller local businesses may feel the impact which comes on the heels of increased cost of goods into the country and therefore making their products more expensive to sell," Carr said.
Carr said that most smaller businesses, particularly those in the food industry, would feel this increased cost, especially when combined with other rising expenses and government-imposed costs like water tariffs.
"The tourism industry relies on supply and demand. If we price ourselves out of the market through increased costs which are passed on to the consumer, then we risk seeing tourists choose other cheaper destinations. It really depends on the business and whether the increased costs can be absorbed without price increases," she said.
"We are already a high-priced destination and are fortunate that tourists still choose to come, mainly because of our Cook Islands people and the incredible service they deliver in making all our tourists feel valued and welcomed."
When asked what support the government should provide to the tourism sector to help navigate this change, Carr said the government could address the additional costs being placed on businesses such as water, "which the Select Committee recommended be brought back under appropriation by government through taxes already paid to government".
"Double taxing businesses for services is not good governance," she said.
The Minimum Wage Review Public Consultations for 2025 were held in March this year to allow the community to engage in meaningful discussions with the panel on the minimum wage and contribute to shaping fair and balanced recommendations for the Minister of Internal Affairs.
The panel members include Maru Mariri-Tepou - Ministry of Internal Affairs, Tristan Metcalfe - Ministry of Finance and Economic Management, Steve Anderson - Chamber of Commerce (employers representative), Ina Kamana - Cook Islands Workers Association (employees representative) and Simona Aumetua Nicholas - community representative.
Cook Islands Chamber of Commerce vice chair Eve Hayden said that the minimum wage recommendation from the warranted panel, of which the Chamber is a member, was subject to a non-disclosure agreement (NDA), and therefore, "we are not in a position to comment yet on the recommendation put forward".
"Once it is in the public area, more than happy to provide you with some comments," Hayden said.
The Cook Islands Workers Association (CIWA) similarly said that it has signed an agreement with the Ministry of Internal Affairs (INTAFF).
Workers Association's Helen Maunga said, "CIWA has signed an agreement with the Ministry of Internal Affairs not to release anything on the 'as you requested below' until they make a public statement then we can make a release comments of our own view to the new rate."
In New Zealand, the latest minimum wage increase came into effect on 1 April 2025.
The increases are:
- adult minimum wage has gone up from $23.15 to $23.50 per hour
- starting-out and training minimum wage has gone up from $18.52 to $18.80 per hour.
Cook Islands has the second highest minimum wage rate in the South Pacific, behind French Polynesia which pays its workers 1100 XPF (NZ$17.50) per hour.
Additional reporting from Teitimoana Tairi
-This article was first published by Cook Islands News.
