Fiji Labour Party Leader Mahendra Chaudhry has launched a scathing attack on the 2026-2027 National Budget, accusing the Coalition Government of penalising workers by reducing the employer contribution to the Fiji National Provident Fund (FNPF) by two percentage points.
Mr Chaudhry said the measure demonstrated that the Government had little regard for the welfare of working people.
“It’s a shame that the Government has moved to penalise the workers by reducing employer FNPF contribution by two per cent in Budget 2026/27,” he said.
“The Budget proves beyond doubt that the parties in the Coalition Government have no feelings for the workers.”
The former Prime Minister also criticised the absence of an increase in the national minimum wage, noting that the rate has remained at $5 an hour despite what he described as a sharp rise in the cost of living since it was last increased in April 2025.
He said the Government’s decision to review the minimum wage merely delayed any meaningful increase and reflected the position advocated by employers.
Mr Chaudhry argued that the Budget failed to provide relief for low-income families struggling with rising food prices, citing a Consumer Council survey conducted between March and May this year which found supermarket prices had increased by between 15 and 35 per cent.
He said the Government had missed the opportunity to reduce the cost of living through measures such as lowering VAT, reducing import duties or expanding the list of zero-rated food items to include meat, eggs and dairy products.
“The Finance Minister has simply stuck with concessions granted four years ago despite the mounting social distress,” he said.
Describing the reduction in employer FNPF contributions as “a cruel move”, Mr Chaudhry claimed the policy would undermine workers’ retirement savings while providing further concessions to the business sector.
“The attack on the pension savings of our workers is typical of a Budget that, on the other hand, has gone overboard in granting tax-free holidays and concessions to the business sector,” he said.
Mr Chaudhry questioned why workers were being targeted by austerity measures when major corporations, banks, manufacturers, retailers, the tourism sector and service providers continued to report healthy profits.
He claimed the Government stood to save about $30 million through the reduction in its own employer FNPF contributions, although he noted the Finance Minister had not disclosed the expected savings.
“Once again, a profligate and irresponsible government that failed to cut back its own expenditure in the last three years is making the workers pay for its extravagance,” Mr Chaudhry said.
