Fiji, officially known as the Republic of Fiji, is a country and archipelago in the South Pacific Ocean off the coast of New Zealand, made up of over 330 islands and 500 islets. Known for its vibrant culture and beautiful landscapes, Fiji is a popular destination among tourists and, more recently, employers looking for skilled, affordable workers.

The workforce in Fiji is made up of approximately 387,000 people (2024), and the GDP currently sits at 5.84 billion US dollars (2024). Fiji’s economy is largely driven by industries including services, agriculture, and its strong tourism sector, which is highly encouraging for employers looking to expand into the South Pacific. The government also provides low cooperation taxes to encourage foreign investment, as well as tax holidays and duty exemptions.

This guide will help inform companies on the employee benefits that must be provided when hiring in Fiji, from overtime compensation to holiday leave entitlement. 

Fiji Labor Laws

Labor law in Fiji is mainly informed by the Employment Relations Act of 2007. This act provides a legal framework that governs most aspects of employment law in Fiji, from employment contracts and minimum wage requirements to leave entitlement and termination rules.

Other relevant acts to the Fiji labor law include the following:

  • Women’s Compensation Act (Cap. 94)
  • Accident Compensation Act 2017
  • National Employment Centre (NEC) Decree 2009
  • Health and Safety at Work Act 1996
  • Essential National Industries (Employment) Decree 2001

Employers should always seek legal advice when compiling employment contracts to ensure that all contracts adhere to Fiji’s labor laws. This can prevent legal issues moving forward and ensure that all employees are hired legally and in compliance.

Mandatory Employee Benefits in Fiji

Many different employee benefits must be provided to workers in Fiji. We’ve detailed some of these in the following sections.

Social Security Contributions

Fiji operates under the Fiji National Provident Fund (FNPF), which is the country’s main social security institution. This provides retirement, medical benefits, housing, and death benefits to workers in Fiji. The rates for the FNPF are as follows:

Contributor Contribution Details
Insured Workers 8% of wages, with voluntary contributions of up to 12%
Self-Employed Workers Annual contribution of at least $84
Employers 10% of total payroll (excluding workers aged 66+), with voluntary contributions of up to 12%

There is also an Accident Compensation Scheme (ACS) and various non-contributory social assistance programs to assist vulnerable groups of people in Fiji.

Annual Paid Leave

Workers in Fiji are entitled to a minimum of 10 working days of annual leave per year.

This must be paid at an employee’s normal rate of pay.

Employees are not eligible for annual leave if they have been absent from work for over 20 working days without a valid reason – this excludes certified sickness.

Working Hours

Typical working hours in Fiji are 48 hours per week. This is usually worked over 6 days, to a maximum of 8 hours per day. Employees working 5 days a week typically work 45 hours per week, with 9-hour days.

Flexible working hours are normal in Fiji, with labor laws allowing this predominantly for managers or executive positions. 

Hours worked between 10 pm – 6 am count as night hours. These hours may be allocated a ‘night shift allowance’ which compensates workers by an additional 20 cents per hour worked.

Children under 18 cannot be made to work longer than 8 hours per day, and cannot be employed during school hours.

Overtime Pay

Overtime is any hours carried out beyond the standard 48-hour week. 

If employees carry out overtime, they must be paid at the rate of 1.5 times their normal hourly rate for the first 4 overtime hours worked during the week, or twice their normal rate if overtime exceeds 4 hours or occurs on Sundays or public holidays.

Overtime is voluntary, and companies may stipulate limits on overtime in their employment contracts.

Public Holiday Leave

Public holidays in Fiji generally provide employees with a paid day off if they fall on a working day. The public holidays in Fiji are as follows:

  • New Year (1 January)
  • Good Friday (18 April) (movable date)
  • Holy Saturday (19 April) (movable date)
  • Easter Monday (21 April) (movable date)
  • Sukuna’s Day Holiday (29 May) (movable date)
  • The Prophet’s Birthday (24 August) (movable date)
  • Fiji Day (10 October)
  • Diwali (November 9) (movable date)
  • Christmas Day (25 December)
  • Boxing Day (26 December)

Sick Leave

Employees in Fiji are entitled to a minimum of 10 days of sick leave per year, provided that they have completed at least 3 months of continuous service with their employer.

Part-time employees are eligible for sick leave on a pro-rata basis.

A medical certificate must be provided to be eligible for sick leave, and unused sick leave cannot be carried over to the following year.

Employees with 3 months of service are also entitled to 3 days of bereavement leave per year.

Maternity Leave

Female employees in Fiji may take 98 days of consecutive maternity leave if they have a baby, provided that they have carried out at least 150 days in the 9 months leading up to the birth.

A woman’s first three births will incur full pay during maternity leave, while subsequent births will be paid at half pay.

Maternity leave can begin before or after delivery, and employees must provide a medical certificate to ensure eligibility.

Paternity Leave

There is currently no statutory paternity leave for workers in Fiji.

A 5-day paternity leave was introduced in 2019; however, this has been held back by the Fiji government due to issues raised by employers.

Severance Pay

Severance pay, or redundancy payment, is provided to employees who have had their contract terminated due to the following reasons:

  • Economic reasons
  • Technological reasons
  • Structural reasons

In these circumstances, employees must be given no less than 1 week’s wages for each complete year of service, provided that they have completed a minimum of 1 year of service for their employer.

Workers are not eligible for severance pay if they have been dismissed due to poor performance or employee misconduct.

Pensions

The pension system in Fiji is centred around the Fiji National Provident Fund (FNPF).

This is a mandatory, superannuation savings scheme that applies to all formal sector workers in Fiji and provides an income to workers upon reaching retirement age. Contributions must be made by employers and employees to the following rates as of 2024:

Contributor Rate
Employers 10% of employees’ gross wages
Employees 8% of gross wages

Fiji also runs a social pension scheme, which is a non-contributory, tax-funded pension for elderly citizens who do not qualify for the FNPF scheme. This provides a monthly allowance to individuals over the age of 60.

Supplementary Employee Benefits in Fiji

It’s advised that companies offer their employees supplementary benefits.

Additional perks have been shown to improve employee retention and to increase the number of job applications received for open vacancies.

Some examples of supplementary benefits include:

  • Enhanced leave entitlement
  • Performance bonuses
  • Flexible working
  • Company car
  • Additional training
  • Transport, housing, and food allowances

Optimize Employee Benefits with Remote People

Remote People can help companies doing business in Fiji with a range of different services.

One of our key offerings is our Employer of Record (EOR) service, which helps streamline the hiring process by taking on the legal responsibilities of employment. The EOR acts as the legal employer for your workers in Fiji—ensuring they are hired compliantly, receive all entitled benefits, and that payroll and tax obligations are properly managed—so you can stay focused on growing your business.

We can assist further with our PEO Services (Professional Employer Organization) – a Fiji PEO specializes in assisting with HR, payroll, and compliance tasks, working alongside a company to help save costs and reduce admin. This is carried out via a co-employment arrangement, eliminating the need to establish a legal entity in Fiji.

Contact Remote People to see how we can help expand your business into Fiji in a streamlined way, ensuring compliance at every stage.