FNPF declares 9.5% interest payout

Fiji National Provident Fund (FNPF) members will receive a 9.5 per cent interest payout for 2026 following another year of strong financial performance, Finance Minister Esrom Immanuel announced in the 2026–2027 National Budget.

Delivering the Budget in Parliament yesterday, Mr Immanuel said the Fund continued to play a critical role in supporting more than 440,000 members while remaining financially strong and well managed.

The announcement follows the FNPF recording more than $1.2 billion in total investment income for the 2026 financial year, reflecting growth across all major asset classes.

"On the strength of this performance, the FNPF Board has declared an interest rate of 9.5 per cent to members for 2026," Mr Immanuel said.

He said the Fund had maintained prudent reserves to safeguard members' savings against future market volatility, adding that the result reinforced confidence in the institution's long-term sustainability.

"The 2026 result reaffirms that members' savings are in safe and capable hands.

"The Fund remains financially strong, well governed and well positioned to deliver sustainable long-term returns, even as we navigate what is expected to be a more challenging global economic landscape in the years ahead."

Employer contribution reduced

Alongside the interest payout, the Government announced a temporary reduction in employer contribution rates to ease pressure on businesses.

From August 1, 2026, employer contributions will be reduced from 10 per cent to 8 per cent for 12 months, while employee contributions will remain unchanged at 8 per cent.

Mr Immanuel said the measure would provide immediate relief to businesses facing rising fuel, transport and operating costs while helping them retain staff and prepare for any potential increase in the minimum wage.

"This measure will provide immediate relief to employers while helping businesses retain jobs and prepare for any potential increase in the minimum wage," he said.

Pension reforms

Looking ahead, Mr Immanuel confirmed that the Reserve Bank of Fiji would resume long-planned reforms to strengthen the regulation and supervision of pension funds, including the FNPF.

The reforms are expected to introduce a legislative framework to enhance oversight, governance and the long-term sustainability of Fiji's pension system.

Mr Immanuel commended the FNPF Board, management and staff for their stewardship, saying the Fund remained financially strong, well governed and capable of delivering sustainable returns.

He said the measures balanced strong returns for members with targeted support for businesses while reinforcing long-term retirement security and economic stability.