Fiji’s FNPF Set for Major Penalty Overhaul in 2025: What Employers Need to Know

The Fiji National Provident Fund (FNPF) is set to introduce significant changes to its penalty system for late contribution payments, effective January 1, 2025. The revised policy, which was approved by Parliament in July 2024, will replace the longstanding flat penalty of $100 per employee per month that has been in place since November 2011.

Under the new system, a 10 percent monthly penalty will be applied to any outstanding contributions, which includes the contributions due for December 2024. This penalty will be calculated based on the balance of unpaid contributions and will continue to accrue monthly until the debt is fully resolved.

Chief Executive Viliame Vodonaivalu shared that The FNPF believes these changes offer a more practical and equitable approach, particularly helpful to micro, small, and medium enterprises while simultaneously holding larger organizations accountable. He emphasized that this updated structure allows for all penalties collected to directly benefit members by being allocated to their accounts, thereby enhancing their retirement savings.

In addition to the new penalty framework, all Contribution Schedules (CS) will need to be submitted by the 14th of each month starting on January 1, 2025. This change is intended to give employers additional time to manage their invoices and process payments before the end-of-month due date.

To assist employers in settling any outstanding debts before the new penalties come into effect, a Penalty Waiver Amnesty is available until December 31, 2024. Employers who clear all outstanding contributions and pay the applicable Loss of Interest (LOI) during this period will have their penalties waived. Vodonaivalu urged employers to take advantage of this amnesty to alleviate any potential financial strain under the new system.

Those who do not utilize the amnesty will face the current penalty of $100 per employee for contributions due in November 2024, followed by the new 10 percent penalty on December 2024 contributions.

Overall, these changes reflect FNPF’s commitment to adapting to the evolving business landscape while improving support for members’ retirement savings. This proactive approach not only provides relief to smaller businesses but also reinforces a culture of accountability across the board.