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FTUC warns against reducing workers’ FNPF contribution rates

FTUC warns against reducing workers’ FNPF contribution rates

The Fiji Trades Union Congress is calling on the Government to fulfil its promise of restoring the Fiji National Provident Fund to a tripartite board structure, saying workers and employers should once again have equal representation alongside Government.

Speaking on the FTUC's budget submission ahead of Friday's 2026/2027 National Budget announcement, National Secretary Felix Anthony says the coalition government had pledged to reinstate the tripartite governance model but is yet to deliver on that commitment.

Anthony says the union expected the change to be implemented during the Government's first year in office and hopes it will finally be addressed.

He also voiced strong opposition to any proposal to reduce FNPF contribution rates, warning that such a move would further weaken workers' retirement savings.

Anthony says workers had already sacrificed millions of dollars during the COVID-19 pandemic through reduced contributions and withdrawals from their accounts.

He stresses that lower contribution rates would not provide meaningful assistance to workers and would instead leave them with less money for retirement.

According to Anthony, around 86 percent of FNPF members have balances of less than $40,000, while 76 percent have savings below $20,000.

He says these figures highlight the need for a review of the FNPF pension scheme to ensure retirees receive adequate and sustainable pension payments.

Anthony also called on the Fund to address concerns raised by pensioners who were negatively affected by pension reforms introduced under the previous government.

The FTUC is also seeking a dedicated trade union grant to support worker education programmes on employment rights, occupational health and safety, and labour laws.

Anthony says such support will be especially important as Fiji prepares for anticipated labour law reforms.

He further urged the Government to reaffirm its commitment to the labour law review process, noting that legislation tabled in Parliament more than a year ago has yet to be enacted.

While many of the issues raised by the FTUC have been discussed with Government over several years, Anthony says progress has been slow.

He notes that commitments relating to worker education grants, wages council reviews and the restoration of the FNPF tripartite board structure have been made before but are yet to be fully implemented.

The 2026/2027 National Budget will be delivered at 10am Friday.

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