NEWS

National Minimum Wage Going Up

Government has approved to increase the national minimum wage (NMW) from $2 per hour to $2.32 per hour. This development follows a submission made to Cabinet by the Minister for
07 Feb 2015 13:40
National Minimum Wage Going Up

Government has approved to increase the national minimum wage (NMW) from $2 per hour to $2.32 per hour.

This development follows a submission made to Cabinet by the Minister for Employment, Productivity and Industrial Relations, Jioji Konrote.

The new National Minimum Wage (NMW) will be effective from July 1 this year. This timeframe is to provide the market and businesses ample adjustment time, especially for exporters and the small and micro enterprises.

Increasing the NMW from $2 per hour to $2.32 per hour (with the 45 or 48 hour-week), means that about 100,000 marginalised workers will have their weekly wages increased from the $90 – $96 range, to the $104.40 – $111.36 range.

Over the past five years, the Fijian economy achieved an impressive average growth of about 3.2 per cent. The growth for 2013 was revised upwards to 4.6 per cent and stood at 3.8 per cent in 2014.

Therefore, it is only fair for Government to ensure that the national economic gains are shared with marginalised Fijian workers, who have contributed significantly to Fiji’s growing economy.

A key objective of the National Minimum Wage Policy is the protection of about 100,000 workers who are the most vulnerable in our society.

These are workers who are isolated by trade unions and who do not have any bargaining power and they have the most inhumane living standards.

The policy also provides an improved competitive platform for businesses, as competition for factor inputs would be fairer in terms of production costs.

The ministry reiterates that the National Minimum Wage does not repeal but coexists with the current sectoral minimum wage rates for workers in the 10 sectors covered under the 2012 Wages Regulations Orders.

The ministry appeals to all employers to be fair and just in distributing their profits and productivity gains not only to their shareholders, but especially to their workers, who are the most important assets of their organisations.

 

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