The Fijian government has assured the private sector that there will be no increase in the minimum wage in the near future, a decision that has garnered positive feedback from the Fiji Commerce and Employers Federation (FCEF). This pledge was made by Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, during a post-budget breakfast event organized by the FCEF.
Edward Bernard, CEO of FCEF, expressed that this commitment enhances confidence among businesses and potential investors, allowing them to strategize their financial plans with greater assurance. It’s noteworthy that the minimum wage had already been raised by 25 percent earlier this year, accumulating more than an 80 percent increase over the past five years. Bernard noted that while wage levels have not kept pace with the rising cost of living, businesses also face increasing operational costs.
Moreover, the government’s recent budget initiatives, such as a 2.5 percent reduction in Value Added Tax (VAT) and a 10 percent reduction in bus fares, were commended for alleviating living expenses for many workers. Employers continue to support healthcare access through the 1 percent FNU levy, benefiting workers’ medical needs.
Bernard emphasized the importance of collaboration between the FCEF and the Fiji Trades Union Congress (FTUC), advocating for a fair wage review process through the Employment Relations Advisory Board and the Wages Councils. This collaborative approach is seen as crucial to developing equitable wage policies that reflect both the needs of workers and the realities faced by businesses.
Overall, the current stability in minimum wage presents an opportunity for economic growth as stakeholders work collaboratively towards fair compensation methodologies, ensuring a balance between employee welfare and business sustainability. This positive sentiment indicates a potential for continued dialogue that can further improve the economic landscape in Fiji, benefiting the workforce and the industry alike.
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