THE Fiji Commerce and Employers Federation (FCEF) has commended government’s intention to commission an independent inquiry into the controversial 1 per cent Fiji National University levy (FNU levy).
The announcement was made by Deputy Prime Minister and Minister for Finance Prof Biman Prasad during his speech at the FCEF-TSLS Graduate Business Start-Up Grant Scheme grant disbursement last month.
“I know that FCEF has been voicing concerns on employer 1 per cent levy,” Prof Prasad said.
“Government has heard you with other stakeholders. The independent expert review will be considered by the Government before any legislative changes will be done.”
Since 1973, employers have been required by law to contribute 1 per cent of their annual gross salaries to FNU to fund the training and upskilling of their workers.
The entire amount had been used for that purpose each year until 2019, when the previous government diverted a bulk of levy to fund a free doctors scheme for the public and a portion of it to pay for no-fault compensation for injuries of workers and school students at the workplace and schools.
Only 10 per cent of the fund was retained for training of workers.
The Government’s intention to continue withholding a portion of this fund is encapsulated in the controversial Work Care Bill, a new proposed legislation that sets up a compensation fund for workers based on the 1 per cent
FNU Levy, a move that FCEF has actively opposed besides calling for the restoration of the entire levy to fund training as was its original intention.
While it has had numerous audiences with the government on the issue, FCEF chief executive officer Edward Bernard told The Fiji Times they believe the Government was now serious about their plight.
“While FCEF prefers a clear and direct policy decision to revert the 1 per cent levy to its initial purpose and design, we see this as a step forward by government and positive outcome, of our continuously advocacy and lobbying on the issue,” Mr Bernard said.
“This time, the Government has made a commitment to do something.
“This is different from DPM’s response a few weeks ago when I asked him — he said that he will look into it. Therefore, we are positive and will support any effort by government to move towards liberating our 1 per cent.”
Mr Bernard said the employers’ 1 per cent FNU levy translates to around $35million to $40million every year.
Note: This article was first published on the print version of the Fiji Times dated June 11, 2025
