Employer FNPF Cut to 8% from 1 August 2026: What Fiji Employers Need to Do

What changed

The 2026–27 National Budget, presented on 26 June 2026, temporarily reduced the mandatory employer FNPF contribution from 10% to 8% of gross wages. The lower rate applies for twelve months, from 1 August 2026 to 31 July 2027.

The employee contribution is unchanged at 8%. Total contributions are therefore 16% of gross wages during the twelve months, instead of 18%.

Paying more than 8% is still rewarded

Employers who choose to keep contributing above the new 8%, up to a maximum of 10%, can claim a 150% tax deduction on the extra amount. If you want to keep your staff's retirement savings where they were, it is worth recording the top-up separately so the deduction can be claimed at year end.

What it saves

For an employee on $2,000 a month, the employer contribution falls from $200 to $160, a saving of $40 a month or $480 over the twelve months. Multiply that across your staff to see the effect on your cash flow.

Remember the saving is temporary. Any budget or cash flow forecast that runs past July 2027 should go back to 10% from August 2027.

What employers should check now

• Payroll software: make sure the employer rate is set to 8% for pay periods from 1 August 2026. We are still seeing payroll systems calculating at 10%.
• FNPF schedules: check each contribution schedule against your payroll report before you lodge it, rather than copying last month's figures.
• Staff deductions: employee contributions stay at 8%. Nothing changes on your staff's side.
• A reminder for August 2027: set a note now to switch the employer rate back to 10%.
• Voluntary top-ups: if you pay above 8%, keep a record so the 150% deduction can be claimed.

How we can help

We prepare and lodge PAYE and FNPF for Fiji employers every month, checked against your payroll before anything is lodged. See our tax compliance service.

Not sure your payroll has been updated? Book a call, email [email protected] or WhatsApp +679 714 2741.