A new $5 National Minimum Wage (NMW) will come into effect from April 1, 2025.
This was announced by Finance Minister Professor Biman Prasad while delivering the 2024/2025 National Budget in Suva yesterday.
He said the decision to increase the NMW was done following a comprehensive review by an independent panel of experts, which included numerous consultations with employers, unions, Government and other stakeholders.
“The actual implementation will be undertaken in two phases,” he said.
“Effective from August 1, 2024, the national minimum wage will be increased to $4.50 an hour with a further increase to $5 an hour effective from April 1, 2025.
In tandem, the 10 sectoral wages will also increase.
“We urge all our employers to ensure that correct minimum wages are paid to their workers and the Ministry of Employment will be closely monitoring to ensure full compliance.”
He said they recognised the additional economic burden this would place on some employers.
However, Prof Prasad said Government was open to looking at solutions for those employers challenged by these new rates.
These new rates, he said, would also improve productivity and reduce employee absenteeism.
