Hiring Talent And Managing Payroll In Fiji

Agreements

• Labor and employment agreements in Fiji are governed by the Employment Relations Promulgation (ERP) 2007.
• ERP outlines the rights and obligations of employers and employees and provides guidance on working hours, minimum wage, health and safety, and dispute resolution.
• Collective Bargaining Agreements (CBAs) are negotiated between employers and trade unions and set terms and conditions of employment for workers in specific industries or sectors
• Other agreements and protocols, such as international labor standards set by the International Labour Organization (ILO), provide additional guidance and protection for workers
• These agreements play a critical role in promoting and protecting workers' rights and supporting the development of Fiji's economy and society.
• International labor standards set by the ILO guide freedom of association, collective bargaining, elimination of child labor and forced labor, and other critical issues
• Compliance with labor and employment agreements in Fiji is monitored by the Ministry of Employment, Productivity, and Industrial Relations.

Onboarding Process

• The onboarding process in Fiji typically includes orientation, training, and completion of necessary paperwork and documentation
• Some common onboarding activities include:

  • Introduction to the company culture, mission, and values
  • Review of policies, procedures, and job duties
  • Completion of tax forms, time and attendance records, and other administrative tasks
  • Health and safety training and emergency procedures
• Mandatory documents to be submitted for onboarding are Proof of identity, Proof of qualifications, Proof of work eligibility and Bank account information

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Medical insurance: Many employers provide medical insurance coverage either as part of their compensation package or as a separate benefit. This insurance may cover a range of medical expenses, including hospitalization, doctor visits, and prescription drugs.
• Paid sick leave: Some employers offer paid sick leave, which allows employees to take time off work if they are ill or injured without losing pay.
• Employee wellness programs: Some employers offer wellness programs to encourage employees to maintain healthy habits and prevent illnesses. These programs may include activities such as health fairs, gym memberships, or on-site health clinics.

Working Hours and Overtime

• Work hours: The standard working hours in Fiji are usually Monday to Friday, 8:30 AM to 4:30 PM.
• Break: Employees are entitled to a minimum of 30 minutes of break time for every 4 hours of continuous work
• Overtime: If an employee works overtime, they must be paid an additional rate of time and a half for each hour worked

Social Security

Taxes for Employees

• Income Tax: In Fiji, the PAYE system is based on a progressive tax system, check the tax bracket for different income below:

  • Employees earning FJD 0 - 30,000 does not have to pay any income tax
  • Those who are earning between FJD 30,000 - 50,000 have to pay 18% tax over FGD 30,000
  • Tax to be paid for FJD 50,000 - 270,000 is FGD 3,600 including 20% over FGD 50,000
  • Employees earning between FJD 270,000 - 300,000 have to pay FJD 47,600 including 20% over FJD 270,000
  • For an income between FJD 300,000 - 350,000, the employee has to pay FJD 53,600 plus 20% over FJD 300,000
  • On FJD 350,000 - 400,000, the employee has to pay FJD 63,600 plus 20% over FJD 350,000
  • For FJD 400,000 - 450,000, employees have to pay FJD 73,600 plus 20% over FJD 400,000
  • Employees earning between FJD 450,000 - 500,000 employees have to pay FJD 83,600 plus 20% over FJD 450,00
  • On an income of FJD 500,000 - 1,000,000, employees have to FJD 93,600 plus 20% over FJD 500,000
  • On an income of more than FJD 1,000,000 an employee has to pay FJD 193,600 plus 20% over FJD 1,000,000
• National Provident Fund: This is a mandatory social security scheme for all employees in Fiji. Employees contribute 8% of their salary to the NPF, while employers contribute an equal amount.
• Fiji National Provident Fund Withholding Tax: This is a tax deducted from an employee's salary, calculated at a rate of 1% of the salary. The tax is used to finance the NPF.

Termination

• An employer must provide written notice of termination or pay instead of notice, as specified in the Employment Relations Promulgation (2007).
• In cases of serious misconduct, an employer may terminate an employment contract immediately, but must still provide written notice within 7 days.
• The rights of employees to challenge termination in Fiji are protected by the Employment Relations Promulgation (2007) and the Fiji Human Rights and Anti-Discrimination Commission Decree (2009).

Severance Pay

Employees or Contractors

Final Words