The Fiji Commerce and Employers Federation has called on the Government to address weaknesses in Fiji’s existing wage-setting system before considering any increase to the minimum wage or the introduction of a living wage.
FCEF Chief Executive Officer Edward Bernard said calls by the Fiji Trades Union Congress for a new living wage system must be weighed against existing wage mechanisms and the realities facing the economy.
“The call to introduce a new living wage system by the Fiji Trades Union Congress must be carefully balanced against existing wage systems and economic realities,” Bernard said.
He noted that Fiji already has several mechanisms for determining wages, including the national minimum wage, sectoral wages, collective bargaining agreements and performance management systems.
According to Bernard, collective bargaining arrangements already provide avenues for addressing cost-of-living pressures and inflation adjustments.
The comments follow a recent International Labour Organization workshop that examined Fiji’s wage-setting framework and identified a number of shortcomings.
“Many gaps in the process of minimum wage setting in Fiji were identified. These included the absence of a wage-setting criteria and genuine and transparent consultations,” Bernard said.
He warned that the shortcomings could potentially place Fiji in breach of ILO Convention 131 on Minimum Wage Fixing.
The workshop also highlighted Fiji’s wage position relative to other countries in the region. Bernard said Fiji’s median monthly wage was reported at US$477. Using the current exchange rate, this is approximately FJ$1,060 per month.
“The ILO workshop revealed that Fiji’s median wage was US$477 per month, higher than 13 countries in the Asia region,” he said.
He added that Fiji’s gender pay gap compared favourably with many countries in Asia and some countries in South America.
Bernard said the Government should focus on establishing an evidence-based wage-setting framework and a transparent consultation process before introducing any new wage system.
“We need to establish an evidence-based wage setting criteria and a transparent consultation system. Until the current wage-setting system is fixed, there should not be any increase in minimum wage or introduction of living wage in Fiji,” he said.
Looking ahead to the 2026/2027 National Budget, Bernard said policy measures should prioritise investment, business expansion, job creation and productivity growth.
“The 2026/2027 National Budget must focus on creating conditions that encourage investment, support business growth, create employment, and increase productivity,” he said
