Minimum wage

From June 1, the minimum wage in Vanuatu will be increased by 36 percent from $US1.82 (VT220) an hour to $US2.48 (VT300).

"Employers must not pay their workers less than this rate for hours worked," the Vanuatu Daily Post reported.

"The minimum wage was increased from VT200 per hour to VT220 per hour in 2019. Under law, minimum wage rate should be reviewed once every two years based on economic factors. The last one was four years ago."

The ruling will include Pacific seasonal workers but advocates say more needs to be done to protect workers from exploitation.

Joe Karu from the Vanuatu National Workers Union welcomes the news, saying that previously the piece rate meant some seasonal workers couldn't keep up with the cost of living.

"It's very good news," he said.

Pacific labour expert Rochelle Lee Bailey from the Australian National University has examined the seasonal workers scheme since 2007 and said this decision is a long time coming.

The Employment Act requires the minister to review the minimum wage every two years.

The Vanuatu Daily Post reported the minister saying he was aware of workers' wage concerns and at the rising cost of living, and this had prompted his move.