Definitive Guide to Hiring in Fiji

Hiring in Fiji

Hiring employees compliantly in Fiji means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Fiji so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Fiji; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Fiji

Employment laws in Fiji are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Fiji employment laws and Fiji policies here.

Employee Probation Period

• The Employment Relations Law does not cover the probationary period of employment.
• A probationary period is 3 months as per case law

Annual Leave in Fiji

• After each year of employment with an employer, an employee shall be given 10 working days’ holiday paid at the normal wages she/he would have received during that period.

Holidays in Fiji

Workers are entitled to paid holidays during Festival (public and religious) holidays. These include memorial holidays and religious holidays (Christian origin).

Here is the full list of public holidays in Fiji:

Maternity Leave Fiji

• The entitlement to maternity leave pay is 98 days.
  
  

Paternity Leave Fiji

• A male worker will be entitled to 5 days' paid paternity leave

Sick Leave in Fiji

• Generally, the minimum entitlement is 10 days during any year of service (except casual and piece-rate workers).
• Sick leave is not generally payable if the employee has served less than 3 months.

Working Hours in Fiji

• An employment contract must fix at not more than 45 or 48 the maximum number of hours (exclusive of overtime) to be worked in a week by a worker bound by that contract.

Overtime in Fiji

• The rate of remuneration payable for overtime work to a worker shall be:
  • one and half time the worker’s normal hourly rate of remuneration in respect of first four hours worked in excess of normal working hours and twice the worker’s normal rate of remuneration for all times worked thereafter;
  • twice the worker’s normal rate of remuneration in respect of all time worked on a rostered day-off;
  • one and half times the worker’s normal hourly rate of remuneration in respect of all time worked on a public holiday;
  • for workers’ engaged on five day working week at one and half times the normal rate of remuneration for the first four hours worked on Saturday and thereafter including Sunday at twice the workers’ normal rate of remuneration.

Termination of Employment in Fiji

According to the labor code, an employer shall not dismiss an employee summarily except in the following circumstances:

• where an employee is guilty of misconduct inconsistent with the fulfillment of the express or implied conditions of the contract of service;
• for willful disobedience to lawful orders given by the employer;
• for lack of the skill which the employee is meant to possess;
• for habitual or substantial neglect of duties; and
• for continual absence from work without the permission of the employer and without other reasonable excuse.

• Notice periods are as follows: -
  • where the contract period is less than one week and wages are paid at intervals of less than one week, there is no notice period
  • where the contract period is one week or more but less than a fortnight or where wages are paid weekly or at intervals of more than a week but less than a fortnight, notice period of 7 days seven days
  • where the contract period is a fortnight or more but less than a month or where wages are paid fortnightly or at intervals of more than a fortnight but less than a month, the notice period is of 14 days
  • where the contract period is one month, the notice period is of one month
• In Fiji the amount of the redundancy payment is 1 week's salary per year worked.

Notice Period in Fiji

• Notice periods are as follows: -
  • where the contract period is less than one week and wages are paid at intervals of less than one week, there is no notice period
  • where the contract period is one week or more but less than a fortnight or where wages are paid weekly or at intervals of more than a week but less than a fortnight, notice period of 7 days seven days
  • where the contract period is a fortnight or more but less than a month or where wages are paid fortnightly or at intervals of more than a fortnight but less than a month, the notice period is of 14 days
  • where the contract period is one month, the notice period is of one month

Severance in Fiji

• In Fiji the amount of the redundancy payment is 1 week's salary per year worked.

Fiji Salary and Wages

13/14th Month Salary in Fiji

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• Employees are entitled to 10 working days holiday, paid at the normal rate as if they were working.
• There is no mention of bonuses paid.

• The compulsory FNPF employer and employee contributions for 2022 are 6%, respectively.
• Effective from January 1st to December 31st, 2023, the FNPF rates will be increased from 6% to 7%. 
• This will be applicable to both employer and employee portions.
• Foreign employees are not required to contribute to the FNPF.
• However, employers have the option to include foreign employees by informing the FNPF in writing of both their and the employees intention to register with the FNPF.

Immigration Fiji

• A visitor’s visa, which is usually issued for one month but may be extended to six months, is normally granted to tourists or to individuals wishing to investigate business opportunities in Fiji.
• Foreign nationals from most developed countries may obtain visitors’ visas at the port of entry if they have valid passports, return or onward tickets, and sufficient funds for living expenses.
• All other persons must obtain visas before entering Fiji.
• The right to work in Fiji is restricted, but the Fiji government recognizes the need to admit individuals with special commercial, professional or technical skills to improve Fiji’s economic development.
• Therefore, permits to reside and work in Fiji are granted to foreign investors and expatriate employees under qualifying circumstances.
• Permits to reside and work in Fiji are granted to fill positions that cannot be filled adequately by local Fiji citizens.
• Permits are usually granted for an initial period of three years and are renewable only if the continued presence of the permit holder is considered to be to Fiji’s economic advantage and essential to the employer’s operations.
• Foreign nationals with investment in approved business ventures in Fiji are granted permits that allow them to increase and manage their investments.
• These permits are usually valid for a three-year period, and extensions are virtually assured as long as the capital remains invested in Fiji.
• Foreign investors, regardless of nationality, wanting to establish a business in Fiji must have the prior approval of Investment Fiji (IF).
• To obtain this approval, a separate application describing all pertinent information relating to the proposed project must be filed with IF.

Value Added Tax (VAT) in Fiji

• VAT of 9% is generally levied on the supply of goods and services in F

Mandatory Benefits in Fiji

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, severance pay and 13th month pay
• Mandatory benefits also include social security benefits.

Payroll Accrual in Fiji

Country Accruals Additional Information

Description

All employers and employees must contribute an amount equal to at least 10% and 8%, respectively, of the gross cash earnings of all employees to the FNPF.

Effective 1 April 2020, the FNPF employer and employee contributions have been reduced to 5% respectively as part of the government’s COVID-19 response.

Foreign employees are not required to contribute to the FNPF. However, employers have the option to include foreign employees by informing the FNPF in writing of both their and the employees intention to register with the FNPF.

Payroll Accruals Additional Information

Accrued Benefits in Fiji

Why use Global Expansion to hire in Fiji

Establishing a branch office or subsidiary in Fiji can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Fiji labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Fiji law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Fiji. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Fiji Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.