Public sector wage costs rose significantly between 2016–2019 – Fiscal Review Committee

The Fiscal Review Committee says Fiji public sector wage costs rose significantly between 2016 and 2019 through a combination of higher wages and more recruitment.

They say civil service salaries fell slightly in 2020 (principally, the World Bank says, because Fiji had 500 fewer teachers) and in 2021 because employers’ FNPF contribution rates were reduced from 10% to 7%.

The report says the Government’s wage bill is around the F$1 billion mark, so a 3% FNPF contribution reduction saves the Government $30 million per year.

The Committee says the World Bank believes that Fiji’s public sector wage costs need to be held down.

The World Bank believes this can be achieved through wage restraint, redeployment of resources rather than new hires or reducing employee numbers.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad will deliver the 2023/2024 National Budget at 10am this Friday.

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