OCEANIA Institute of Technology (OIT) Group CEO Dr Hasmukh Lal has called for the full 1 per cent employer training levy to be committed to workforce development, warning that Fiji is heading toward a skills and productivity crisis if urgent reforms are not made.
Speaking during the launch of Oceania Institute of Technology’s online 500 self-paced micro-learning courses in Nadi, Dr Lal urged the Government to review the current levy grant scheme for employers.
He warned that failure to fully commit the levy to employer-led training would result in a “human capital disaster”.
“At the moment, out of that 1 per cent, 40 per cent is for Accident Compensation Commission of Fiji (ACCF), 50 per cent is for medical levy and 10 per cent is only for trade,” he said.
“So annually $25 to $27 million is collected, but having $2.5 million only for employees in service studying at a national level is an embarrassment.
“I urge the Government of the day that we don’t have time. We are nearing towards the next budget, and I hope it is considered by the Government, in the interest of the nation, in the interest of employee training and the interest of the employer.
“That this training levy administration be made independent of a training provider.”
Dr Lal said a 2018 Technical and Vocational Education and Training (TVET) review commissioned by the Fiji Higher Education Commission had already outlined the way forward.
“The recommendation was very clear that we need a Skills Council of Fiji,” he said.
He suggested that Government consider establishing a statutory body to administer the 1 per cent employer levy, or alternatively merge the function with the Higher Education Commission or the Tertiary Scholarships and Loans Service after a proper capability assessment.
Since 1973, employers have been required by law to contribute 1 per cent of their annual gross salaries to FNU to fund the training and upskilling of their workers.
The entire amount had been used for that purpose each year until 2019, when the previous government diverted a bulk of levy to fund a free doctor’s scheme for the public and a portion of it to pay for no-fault compensation for injuries of workers and school students at the workplace and schools.
