The Fiji Trades Union Congress says it is disappointed with the 2026/2027 National Budget, claiming it offers little new relief for workers grappling with the rising cost of living.
National Secretary Felix Anthony says the Budget places greater emphasis on supporting businesses than workers, with no increase in the national minimum wage despite ongoing financial pressures faced by many households.
Finance Minister Esrom Immanuel has announced that $100,000 has been allocated for reviewing and conducting further consultations on the minimum wage and fair wages during the next fiscal year.
Anthony says while $100,000 has been allocated for further consultations on the minimum wage next year, workers need immediate relief rather than more discussions.
He says the Government moved quickly to assist businesses affected by higher fuel costs but failed to provide comparable support for workers.
The Finance Minister also announced a temporary 2 percentage point reduction in the Fiji National Provident Fund (FNPF) employer contribution rate, effective from August 1st, 2026, where employer contributions will decrease from 10 percent to 8 percent, while employee contributions remain locked at 8 percent.
Anthony criticised this decision arguing that the move effectively amounts to a two percent pay cut for workers.
He claims the reduction will save the Government about $30 million while workers collectively stand to lose hundreds of millions of dollars in retirement savings at a time when many families are struggling to cope with the cost of living.
Anthony further expressed disappointment that the Government did not include funding to compensate former Water Authority of Fiji workers who were terminated in 2019.
He says the compensation was announced in the 2024/2025 National Budget but is yet to be delivered, describing the omission as a breach of the Government's commitment.
While welcoming investments in infrastructure, Anthony says the overall Budget favours state-owned enterprises and the private sector over workers and their families.
He says the assistance highlighted in the Budget largely consists of measures announced in previous years rather than new initiatives to address current economic challenges.
Anthony adds that workers cannot rely on past assistance to meet today's needs and says maintaining existing tax rates and previously announced support does not provide meaningful relief in the current economic climate.
