Fiji, an archipelago in the South Pacific Ocean, is made up of over 330 islands and 500 islets. It is a cultural and business hub known for its lush landscapes, coral reefs, and welcoming people. Its strategic location makes it a gateway to Australia, New Zealand, and the United States, attracting businesses and tourists alike.
Read more on Fiji: Fiji Country Guide
Currency in Fiji
The official currency of Fiji is the Fijian Dollar (FJD), regulated by the Reserve Bank of Fiji. Here’s what you need to know:
- Denominations:
- Banknotes: $5, $10, $20, $50, $100.
- Coins: 5 cents, 10 cents, 20 cents, 50 cents, $1, $2.
- Stability: While relatively stable, the FJD is influenced by fluctuations in tourism and trade balances.
- Payment Systems:
- Cash is dominant in rural areas.
- Card transactions and mobile payments are increasingly common in urban regions.
- Remittances: A vital contributor to the economy, largely from Fijians abroad in Australia, New Zealand, and the United States.
Employment and Payroll Cycle
- Minimum Wage: FJD 4.50 per hour (to increase to FJD 5.00 by April 2025).
- Normal Working Hours: 8 hours/day or 44 hours/week.
- Overtime Pay:
- 1.5x the hourly rate for the first four hours of overtime.
- 2x the hourly rate for additional hours, weekends, and public holidays.
- Payroll Frequency: Typically bimonthly, but some employers may do it monthly.
- 13th Month Pay: Not mandatory.
Taxation and Payroll Deductions
- Employee Income Tax Rates:
- Income below FJD 30,000: Exempt.
- Progressive tax rates up to 20% for higher income brackets.
- Social Security Contributions:
- Employer: 7% to the Fiji National Provident Fund (FNPF).
- Employee: 7% to the FNPF.
- Corporate Taxes: A standard 20% rate, with sector-specific reductions and exemptions.
Leave and Benefits
- Annual Leave: 10 days after a year of employment.
- Sick Leave: 10 days per year.
- Family Care Leave: 5 days per year (non-carryover).
- Maternity Leave: 84 days (42 before and 42 after delivery).
- Paternity Leave: 5 days for fathers meeting specific requirements.
- Bereavement Leave: 3 days.
Employment Laws and Termination
- Notice Periods: Vary based on contract duration (e.g., 7 days for contracts up to a fortnight).
- Severance Pay: 1 week’s salary per year of service.
- Discrimination Prohibited: Employment Relations Act 2007 prohibits bias based on race, religion, gender, and other characteristics.
Key Insights for Employers
- Cultural Norms: Respect for hierarchy and community welfare is vital. Engaging in traditional ceremonies like the kava ceremony fosters goodwill.
- Hiring and Onboarding: Employers must obtain a tax file number (TFN) and superannuation details for new hires. A work visa is required for foreign employees.
- Data Retention: While not explicitly mandated, adhering to international best practices for data privacy is advisable.
Why Choose Fiji?
With its young, skilled workforce and government initiatives fostering business growth, Fiji presents a robust platform for both local and international businesses. Strategic location, tax incentives, and opportunities in sectors like tourism, ICT, and renewable energy add to its allure.
Take the Next Step
Let us handle the complexities of payroll, compliance, and employee management in Fiji. As one of the first Employer of Record services in the country, we will streamline your expansion and focus on driving your business forward. Book a free consultation today.
