Next year the contribution rate for compulsory Fiji National Provident Fund members will increase to 12 per cent, starting 1 January.
This means that employers and employees or members will pay six per cent each as opposed to five per cent that they were paying since April last year.
FNPF Chief Executive Officer Viliame Vodonaivalu said the increment is part of moves to gradually restore the compulsory contribution rate after it was reduced from 18% to 10% in April 2020 to cushion the impact of the COVID-19 pandemic.
“From 1st January, contribution rates will move up by 2%. This is positive for compulsory members because it simply means an increase in their contributions and ultimately, their retirement savings,” he said.
The Fund is encouraging employers to comply with the new rate from January. Employers who find it difficult to meet their FNPF obligations are encouraged to reach out to the Fund’s team.
“While the rate is still lower than the pre-pandemic rate, it’s a step in the right direction, especially with economic activities slowly picking up,” Vodonaivalu said.
Members are also encouraged to make additional contributions to grow their savings.
“Many have accessed their savings during this pandemic, however you can regain some of the lost interest by adding on to your mandatory contributions.”
