PAYE in Fiji — What Every Employer Must Know

What is PAYE

Pay-As-You-Earn is the monthly tax withheld from employee wages and paid to FRCS on their behalf. Every employer in Fiji that pays wages must operate PAYE.

Current PAYE brackets (resident individuals)

Income tax is progressive, with a tax-free threshold of $30,000 and rates rising to a top marginal rate of 39% above $1,000,000. The full bracket table is available in our Tax Rate Dashboard.

Monthly compliance cycle

1. Run payroll — calculate gross, PAYE, FNPF and net for each employee
2. Issue payslips
3. Lodge the PAYE return and pay FRCS by the 7th of the following month
4. Retain records for 7 years

Annual reconciliation

At year-end, the PAYE Annual Summary (IRS203) reconciles total wages paid and PAYE withheld. Employee certificates (IRS201) are issued to each staff member. Due by end of February for the prior calendar year.

Common PAYE pitfalls

• Misclassifying contractors as employees (or vice versa)
• Missing the 7th-of-the-month deadline — interest accrues immediately
• Incorrect treatment of allowances (housing, travel, meal)
• Failing to account for benefits-in-kind (company car, subsidised housing)
• Not issuing annual IRS201 certificates

Alvin Kumar & Associates' approach

Our payroll package covers monthly PAYE calculation, lodgement, payment preparation, annual reconciliation, and IRS201 certificate issuance.