The assessment for the incremental increase of the minimum wage relied on the data presented in the 2022 Labour Market Survey conducted by the Ministry of Commerce, Industry, and Labour (M.C.I.L.).

The data reveals that 1,475 employees were earning $3.00 per hour, with 80 employees paid below this rate, and 518 employees earning between $3.01 and $3.60 per hour.

This means a total of 2,073 employees out of the 14,044 will benefit from the $4.00 minimum wage increase which was made effective on Monday this week and another $0.84 sene which is to be effective from 1 July  2025 to make up the total incremental increase of $4.84  per hour. 

It also noted that 3,321 employees (23 per cent of the workforce) earn the lowest wage payable by employers, of which 54 per cent are males and 46 per cent are females.

The formal private sector encompasses 12,480 private sector employees and 1,564 employees in State Owned Enterprises (S.O.E.s), totaling 14,044 formal private sector employees.

The survey noted that the majority were earning between $4.61 to $6.60 per hour with some earning $6.61 and above per hour. 

Notably, 53 private companies employed 80 workers paid below the minimum wage, while 325 companies employed those earning $3.00 per hour. 

The survey also highlighted that a significant number of employers (478) provide additional remunerations such as cash bonuses and insurance commissions, aiming to motivate employees and enhance the company reputation. 

The Chief Executive Officer of M.C.I.L., Pulotu Lyndon Chu Ling said in an interview with the Samoa Observer on Wednesday the decision allows businesses time to adjust to the new increase. 

While some have voiced their concerns about the increase saying it's not much, Pulotu emphasised that biennial reviews are planned, reassuring sectors of future adjustments, including another increase by 2026.

The C.E.O. of the Samoa First Union, Seveaoga Saina Setu in an interview with this newspaper on Saturday said they had advocated for a $5.00 increase to the minimum wage. 

She said the Union accepted the new increase and was optimistic that there is now a two-year review; which means another increase in 2026. 

The survey covered 1,300 active employers, including S.O.E.s and was conducted from August to November 2022, the survey adhered to international standards, aiming to update workforce profiles, assess demand-supply gaps, and analyse COVID-19 and seasonal employment impacts.