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PAYE spike explained

August 22, 2025 11:07 am

[Photo Credit: SSA]

Civil servants have been assured that the recent spike in income tax deductions is temporary and consistent with standard Pay As You Earn calculations.

The Ministry of Finance said the increase followed the three percent salary rise, with the first pay reflecting a one-off higher deduction.

It said that deductions would stabilise from the next pay cycle, with the payroll system ensuring the annual tax aligns with each employee’s salary under the current PAYE schedule.

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The Ministry noted that only individuals earning more than $30,000 a year are liable for income tax in Fiji.

It also states that the government will always deduct the correct amount, though fluctuations may occur when pay adjustments take effect mid-year.

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