The national minimum wage should be increased by a minimum of 70 per cent, says Western Sydney University’s Professor Dr Partha Gangopadhyay.

During the consultations in Lautoka, Dr Gangopadhyay said the recommendation was in light of rising poverty in Fiji due to unprecedented adverse economic shocks triggered by the COVID-19 pandemic.

“This minimum wage bite of 70 per cent will take the national minimum wage in Fiji towards the living wage due to increased inflation and food inflation.

“Finally, the economic shocks from the pandemic have indicated that the recovery will critically open on consumer confidence and consumer spending.”

Prof Dr Gangopadhyay said that by raising the minimum wage towards the living wage, higher incomes at the lower end of the income distribution would boost consumer spending and the economy.

According to the Sydney professor’s research, Fiji’s productivity growth was healthy from 2010 to 2018, “however, the path of inflation has been volatile”.

He said Fiji’s inflation rate was 4.08 per cent in 2018 and reached a lower rate of 1.77 per cent in 2019, adding that in 2020, the country witnessed a major disinflation rate of negative 2.6 per cent while 2021 recorded a low rate of 1 per cent.