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Employees Given Choice For FNPF Deduction

It starts today. Employers will pay 10 per cent as mandatory contribution towards their employees’ retirement savings. The contribution is an increase of two per cent from the previous eight
01 Jan 2015 10:45
Employees Given Choice For FNPF Deduction

It starts today. Employers will pay 10 per cent as mandatory contribution towards their employees’ retirement savings.

The contribution is an increase of two per cent from the previous eight per cent employers contribution.

An employees’ contribution on the other hand remain the same at eight per cent as per according to the their wages and salary.

This was part of FijiFirst Government’s manifesto and will enable employees to accumulate retirement savings much faster.

FNPF chief executive, Aisake Taito said FNPF believes this would create more opportunity for contributing members to boost their retirement savings.

“This means, employers will adhere to the new contribution rate, starting with January 2015 wages, due end of February 2015,” Mr Taito said.

“Also from today, compulsory members (those in employment) can choose to pay more than the mandatory 8 per cent contributions from their wages.”

Requests will be assessed by the employer and FNPF to ensure that members are still within the financial commitment ratio as per the Employment Relations Promulgation.

The maximum additional contributions that a member can opt for, is inclusive of excess contributions; which is paid by some employers as part of employees benefit.

Members who will be deducting additional contributions towards their FNPF accounts will need to decide on whether these deductions are to be directed to their Preserved or General Account.

The general account can be accessed for early or pre-retirement withdrawals whilst the Preserved Account is reserved for retirement.

Feedback: ranobab@fijisun.com.fj

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