Finance Minister Esrom Immanuel has announced a 9.5 per cent interest rate for Fiji National Provident Fund (FNPF) members while unveiling a temporary reduction in employer contribution rates aimed at easing business costs and protecting jobs.
Delivering the 2026-2027 National Budget in Parliament, Mr Immanuel said the FNPF remained one of the country’s most important financial institutions, supporting more than 440,000 members.
“Mr Speaker Sir, the Fiji National Provident Fund plays a critical role in our economy and in supporting the welfare of over 440,000 members.”
He said the Fund delivered another strong financial performance during the 2026 financial year, recording more than $1.2 billion in total investment income, with growth across all major asset classes compared with the previous year.
Based on that performance and following independent actuarial clearance, the FNPF Board has approved a 9.5 per cent interest rate for members.
“I am pleased to announce that the FNPF Board has declared an interest rate of 9.5 percent to members for 2026.”
Mr Immanuel said prudent financial reserves had also been maintained to protect the Fund against future market volatility.
“The 2026 result reaffirms that members’ savings are in safe and capable hands. The Fund remains financially strong, well-governed, and well-positioned to deliver sustainable long-term returns.”
The Finance Minister congratulated the FNPF Board, management and staff for their stewardship of the Fund and thanked members for their continued confidence.
To provide relief to businesses facing rising operating costs, Mr Immanuel also announced a temporary reduction in the employer FNPF contribution rate.
From 1 August 2026, employer contributions will fall from 10 per cent to 8 per cent for a period of 12 months, while the employee contribution rate will remain unchanged at 8 per cent.
Mr Immanuel said the measure was designed to ease pressure on employers dealing with higher fuel, transport and business costs.
“This measure will provide immediate relief to employers facing rising fuel, transport and operating costs, while helping businesses maintain their investment plans, retain jobs and prepare for any potential increase in the minimum wage.”
He added that the reduction would also help businesses adjust following the removal of the Export Income Deduction incentive.
Looking ahead, Mr Immanuel announced that the Reserve Bank of Fiji would resume work on long-planned reforms to strengthen regulation of pension funds.
He said the reforms would establish a legislative framework governing the regulation and supervision of pension funds and organisations involved in the establishment, operation and administration of pension schemes, including the Fiji National Provident Fund.
