All employees in the country will have a 3% reduction in their Fiji National Provident Fund contributions from the 1st of April.
Minister for Economy Aiyaz Sayed-Khaiyum says this will continue till the 31st of December, 2020.
He says this will put $80 million in the pockets of all employees for the next nine months while a steady contribution to their superannuation scheme will continue.
Sayed-Khaiyum has further revealed that they will reduce employer FNPF contributions from 10% to 5% from the 1st of April to the 31st of December 2020.
He says this will enable employers to keep $130 million in their accounts.
The Economy Minister says this will help employers sustain their businesses and cash flow which is a critical issue at this point in time.
He adds that this will minimize job losses and hour reductions.
“Just as government is helping employers by reducing their FNPF commitments, we expect employers to work closely with FNPF to assist with the withdrawal process for any of their employees who qualify”.
Sayed-Khaiyum has also sent out a stern warning following the announcements that no Fijians should make a mad-dash to FNPF.