An independent review is set to be conducted on the one percent mandatory levy aimed at supporting workforce training and development in Fiji. This levy, introduced by the government, currently sees its allocation heavily skewed, with only 10% of collected funds directed towards training initiatives since 2019. The majority of the funds—50%—have been allocated to a medical scheme, while 40% is diverted to the Accident Compensation Commission Fiji.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, acknowledged the concerns raised by employers regarding the distribution of this levy and assured that the government would engage independent experts in reviewing its allocation before making any legislative modifications. Employers, particularly represented by the Fiji Commerce and Employers Federation, have expressed the need for a reassessment of how the Fiji National University levy is utilized to enhance workforce training.
Highlighting the importance of small and medium enterprises (SMEs), Professor Prasad pointed out that they employ 60% of the nation’s workforce and contribute 18% to the economy. He emphasized the government’s commitment to bolstering these businesses and fostering further growth.
Moreover, there is a burgeoning call for dialogue and reform regarding labor laws, reflected in ongoing discussions about the Work Care Bill, which has also drawn attention to the misallocation of training funds. The current focus on engaging stakeholders—including employers, educators, and government officials—signals a hopeful direction towards enhancing transparency and accountability in the management of these funds.
With continuous engagement, the discussions surrounding this levy review present a promising avenue for improving workforce development, which is crucial for addressing Fiji’s current skills gap and preparing its workforce for future economic demands. By prioritizing training initiatives, stakeholders can work towards creating a more skilled labor force, ultimately contributing to sustainable economic growth in Fiji.
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