GOVERNMENT has promised the private sector that it will not increase minimum wage in the near future, a move that has been welcomed by the Fiji Commerce and Employers Federation (FCEF), the apex body for Fiji’s private sector.The assurance was given by Deputy Prime Minister and Minister for Finance Professor Biman Prasad while responding to questions by employers at a post-budget breakfast organised by FCEF on Saturday.
“This will definitely and immediately generate more confidence within the private sector and with potential investors,” FCEF chief executive officer Edward Bernard said in a statement.
“This announcement allows businesses to plan their next financial year with more certainty and re-look at their investment and human resource plans that were on hold.”
Mr Bernard said in April this year, minimum wage had increased by 25 per cent and in the last five years by more than 80 per cent.
“While I can understand that wage rates have stagnated against the increasing cost of living, businesses of all sizes and in all sectors are also faced with the increasing cost of doing business,” he added.
Applauding the Government’s budget, Mr Bernard said that the reduction in Value Added Tax (VAT) by 2.5 per cent and reduction in bus fares by 10 per cent will reduce the cost of living and traveling to work for many workers.
“Employers also pay for free private medical doctors, through the 1 per cent FNU levy, that workers are also accessing to support their medical costs.
“In addition to that, the increase in remittance of $1.5billion has also generally increased household income. Workers are earning higher wages overseas and sending money back to their families to use for consumption and investment.”
Mr Bernard said it was important for FCEF and the Fiji Trades Union Congress (FTUC) to work together through the Employment Relations Advisory Board (ERAB) and the 10 Wages Councils, to ensure that there is an equitable process and formula when reviewing national and sector-based wage rates.
Note: This article was first published on the print version of the Fiji Times dated June 30, 2025
