The contribution rate for compulsory FNPF members will increase to 12 percent from 1st January 2022 as announced in the 2021-2022 National Budget this year.
This means that employers and employees (members) will pay 6 percent each.
The new rate will be effective until 31st December 2022.
FNPF Chief Executive Officer Viliame Vodonaivalu says the increment is part of moves to gradually restore the compulsory contribution rate, after it was reduced from 18 percent to 10 percent in April last year to cushion the impact of the COVID-19 pandemic.
Vodonaivalu says from 1st January, contribution rates will move up by 2 percent as they work towards reinstating the rate to what it was pre-COVID-19.
He says this is positive for compulsory members because it simply means an increase in their contributions and ultimately, their retirement savings.
Employers are encouraged to ensure they comply with the new rate, come January.
Vodonaivalu says while the rate is still lower than the pre-pandemic rate, it’s a step in the right direction, especially with economic activities slowly picking up.
FNPF also commends those employers who have maintained the old contribution rate through additional payments to the mandatory rate.
The CEO says they continue to encourage members to take up additional contribution payments as a means of growing their savings now, rather than later.
Employers are encouraged to reach out to the Fund’s team if they are continuing to face challenges with meeting their FNPF obligations.
