Businesses strategize to absorb minimum wage increase without burdening consumers – FCEF CEO

Businesses strategize to absorb minimum wage increase without burdening consumers – FCEF CEO
[Image: File]

As the national minimum wage is progressively being increased to $5 an hour and there are concerns that the increase in the cost of doing business will be passed down to consumers, Fiji Commerce and Employers Federation says businesses have put in place strategies to ensure that they can absorb what they can.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad has made a call to businesses to not pass this increase to consumers just because it is going to raise the cost of production.

He says it will be unethical for businesses who can afford to pay the increase to pass those increases in cost on to the consumers.

While responding to questions by fijivillage News, FCEF CEO Jonetani Tonawai says they are happy with the progressive approach that has been taken by the Government as this is what they had suggested.

He says in the short to medium term, the businesses have been prepared in the slow progression of things as opposed to a big jump.

He says at the end of the day, the cost of doing business will be important for the businesses and the two things they will consider is the ease and the cost of doing business.

Effective from 1st August 2024, the national minimum wage will be increased to $4.50 an hour with a further increase to $5.00 an hour effective from 1st April 2025.

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