The U.S. Department of Labor has announced mandatory minimum wage rate increases for American Samoa. The rate increases will apply to all government employees and several of the covered private sector industries in the territory.

In June, the department appointed a six member committee to review local economic conditions and hear testimony from interested parties at a public meeting held in Pago Pago, American Samoa. The six-member committee comprised two members, representing the public sector, employers and employees.

Based on its findings, the committee recommended a rate for each industry that will not substantially curtail employment and will not give industries in the territory a competitive advantage over similar US businesses not in American Samoa. The minimum wage rates for all government employees and the specified private-sector industries will increase by five percent over the next two years. The new rates will take effect from October 18, 2005.

The following chart shows the changes in minimum wage rates for affected industries:

The Fair Labor Standards Act (FLSA) provides that minimum wage rates in American Samoa may be established by special industry committees at rates below that required on the mainland. The industry committee meets biennially to recommend an alternative to the automatic application of the mainland minimum wage rate, and to gradually increase rates to the mainland level without adverse effect on the Samoan economy or on job opportunities.

...back to 6 October 2005

Further Information:
U.S. Department of Labor Announces Minimum Wage Increase For Some American Samoa Industries
Wage Rates in American Samoa

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