Effective January 1, 2025, employers will have to pay a 10% monthly penalty on outstanding contributions to Fiji’s superannuation fund, replacing the current fixed penalty of $100 per employee per month.
The new penalty system will apply to all unpaid contributions, including those from December 2024, and will continue to accumulate until the debt is cleared, Fiji National Provident Fund CEO Viliame Vodonaivalu said in a statement.
All penalties will be credited directly to the affected member’s account.
Vodonaivalu said the revised penalty regime was practical as it introduced a fair and equitable approach, replacing the one-size-fits-all penalty system.
“The existing penalty system has remained unchanged despite the significant development in the business landscape, especially with emerging segments and industries. While it has served its purpose, we believe that this new system will be more manageable for employers,” he said.
Under the new system, larger businesses will face higher penalties based on the amount owed, while smaller entities will experience reduced financial burden.
Employers must also submit their Contribution Schedule (CS) by the 14th of each month to allow more time for invoice processing and payments before the end-of-month deadline.
The FNPF is offering a penalty waiver amnesty until December 31, 2024. Employers who settle outstanding contributions and pay the applicable Loss of Interest (LOI) by this date will have all penalties waived.
