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The Government will increase the Fiji National Provident Fund employer and employee contribution from 5% to 6% from 1st January 2022 through 31st December 2022.

Economy Minister, Aiyaz Sayed-Khaiyum says for more than a year now, FNPF members’ accounts have received contributions at a lower rate.

Sayed-Khaiyum says the 1% reversal for both employers and employees should yield a total of around $40 million dollars credited to members’ accounts.

He adds the Government will gradually revert the contribution rates to a total of 18% in the coming years.

“Any employer who chooses to contribute more than the 6% statutory mandatory contribution, up to 10%, will be allowed to deduct 300% of that contribution from their taxes and that additional income in the pockets of the employee will be exempt from income tax”.

He adds FNPF members between the ages of 50 and 54 with balances of up to $10,000 will now be able to withdraw all remaining funds from their FNPF account.

The Economy Minister says this will provide some form of financial support for decisions regarding their livelihood

Sayed-Khaiyum says FNPF members affected by COVID-19 will also be able to withdraw up to 10,000 dollars for business-related purposes from general accounts.

This is expected to inject up to 30 million dollars into the economy.