Changes to FNPF Contribution rate
The contribution rate for compulsory FNPF members will increase to 12% from 1st January 2022 as announced in the 2021-2022 National Budget this year.
This means that employers and employees (members) will pay 6% each. The new rate will be effective until 31 December 2022.
Chief Executive Officer Viliame Vodonaivalu said the increment is part of moves to gradually restore the compulsory contribution rate, after it was reduced from 18% to 10% in April last year (2020) to cushion the impact of the COVID-19 pandemic.
“From 1st January, contribution rates will move up by 2% as we work towards reinstating the rate to what it was preCOVID-19. This is positive for compulsory members because it simply means an increase in their contributions and ultimately, their retirement savings.”
“Employers are encouraged to ensure they comply with the new rate, come January. The restoration of contribution rates is indicative of our joint commitment (Government & FNPF) to rebuilding member balances after more than a year of reduced contribution rates.”
“While the rate is still lower than the pre-pandemic rate, it’s a step in the right direction, especially with economic activities slowly picking up,” said Mr. Vodonaivalu.
“The Fund acknowledges the efforts of employers who have continued to pay their employees’ contributions, despite their own challenges. We commend those employers who have maintained the old contribution rate through additional payments to the mandatory rate.”
“We continue to encourage our members to take up additional contribution payments as a means of growing their
savings now, rather than later. Many have accessed their savings during this pandemic, however you can regain some of the lost interest by adding on to your mandatory contributions.”
Employers are encouraged to reach out to the Fund’s team if they are continuing to face challenges with meeting their FNPF obligations.
The Fund’s team can be contacted via email on EmployerHelpline@fnpf.com.fj or 3238999.
Alternatively, queries can be routed through 3307811 or 5857, Information@fnpf.com.fj, live web chat facility on the FNPF website or through our social media pages on Facebook and Twitter.