Employee benefits are the additional benefits and perks employers offer to all employees. These benefits are decided based on the company’s policy and compensation structure.
Employee benefits have several advantages for employees and employers. They keep the existing employees motivated while reducing employee turnover. These benefits can also help companies attract the best talent available in the market.
All workers in Fiji are eligible for a variety of employee benefits. Each worker is paid a salary that is equivalent to the minimum wage set by the Fijian government. Additionally, Fijian employees are allowed to take a variety of leaves according to their needs, including maternity leave, bereavement leave, and others. The employees receive optional benefits like a corporate car, health insurance, etc., apart from the mandatory benefits defined by the government. Before choosing employee benefits in Fiji, you must conduct a thorough market analysis.
With the help of this guide, you can design a compensation and benefits plan for Fiji that will keep your staff members motivated.
Compensation Laws in Fiji
Several compensation laws in Fiji administer a company’s benefits plan. Some of the important compensation laws include:
- The Employment Relations Act of 2007 states that employees cannot accumulate sick leaves. These leaves automatically lapse every year.
- As per the Employment Relations Act of 2007, a female employee is entitled to her regular salary during the 3-months maternity period for the first three births and 50% of the salary for the 4th and subsequent births.
- The Fiji labor law states that employers shall pay employees for the number of hours they work on a public holiday.
- Section 9 of the Employment Relations Act states that the employer must maintain a safe and healthy work atmosphere for employees.
- The employment contract must state the number of working hours and the number of working days. Employers cannot ask employees to work beyond these hours.
How to Develop an Employee Benefits Program for Employees in Fiji
Creating a compensation package in Fiji is quite comprehensive, and you must take care of several aspects while creating a practical benefits pack for your employees. Before starting the process, you must decide on a budget and know employees’ demands.
Let’s look at some of the essential steps for creating an employee benefits program for employees in Fiji.
Step 1: Plan your goals and set a budget
Before creating a compensation structure in Fiji, you must set goals for all you wish to provide to employees.
Consider the company’s size and the industry it operates in before creating the benefits policy. You must also review employment contracts or collective bargaining agreements when deciding on benefits not to violate any terms and policies offered to employees.
Moreover, decide on a company budget within which you can select the benefits to provide without causing a financial burden on the company’s revenue. You can set goals by keeping the following things in mind:
- Energizing and inspiring the current workforce while attracting fresh talent
- Maintaining financial discipline while creating employee benefits in Fiji
- Keeping all relevant labor laws in mind
Step 2: Know the industry standards and the employees’ expectations
Offering benefits to employees is just as crucial as staying under a certain budget. For the plan to be attractive to your employees, you can investigate the accepted industry norms and the kind of perks your competitors are offering. These conclusions will assist you in developing a competitive compensation and benefits policy in Fiji.
You can conduct a survey internally to learn what the employees expect from the benefits plan. The study’s results will show what types of benefits employees want from their employers. Additionally, it will assist you in identifying areas where the plan’s first draft needs work so that you can fill any gaps and make the necessary corrections. According to the survey, you could also cut back on some expenses and eliminate incentives your employees do not plan to use.
Step 3: Craft a flexible compensation structure
You must work on creating a compensation structure to meet the diverse needs of all employees. Employers are required to take into account relevant demands and design a flexible benefits package. The employer must provide guidance and clarify how to take advantage of any relevant perks.
Step 4: Communicate the plan
Once you have a benefits plan, you may inform all parties, including your employees. You can let them read the rough draft of the plan and ask for their input. You can include any comments or feedback that adds value to the benefits plan or improves it.
Additionally, suppose the feedback indicates that certain perks will be underutilized. In that case, you may either make the necessary adjustments to make it usable or completely delete that particular benefit to save money.
Step 5: Analyse the final plan
Businesses operate in a highly dynamic environment. Hence, your plan should withstand all kinds of changes. You must test your compensation structure in Fiji in different business conditions before you finalize it.
Before you release the compensation policy in Fiji, you must scan the document to find any errors or mistakes. Also, before starting the implementation phase, evaluate every aspect of the benefits plan. You must also create a few metrics to evaluate the plan’s effectiveness and the entire activity.
Types of Guaranteed Benefits in Fiji
Several mandatory employee benefits in Fiji are compulsorily offered to all the country’s employees. Listed below are some of Fiji’s most notable guaranteed benefits that aid employees.
- The minimum wage in Fiji is FJD 1,220 monthly. Employers must pay the employees FJD 3.67 per hour if they are paid at an hourly rate.
- These minimum wages are currently applicable in 10 major industries like manufacturing, hotels, mining, civil and electrical engineering trades, printing trades, logging, security services, retail and wholesale, garments, and road transport industry.
- The other industries have a slightly higher minimum wage depending on the nature of work.
Working hours and overtime
- The maximum number of hours employees can work in Fiji is 48 hours.
- The employees can either work eight hours per day for six days or nine hours a day for five days based on the company’s policy.
- If the employees work beyond eight hours in a six-day working week or nine hours in a five-day working week, they are entitled to overtime pay.
- The overtime payment rate differs across industries. However, in most industries, the overtime pay rate is 150% of the employee’s regular salary.
- Employees who work on a rest day get an alternate day off instead of a rest day.
- All employees in Fiji are entitled to a 10-day annual or paid leave period.
- However, if the employee has not been to work for 20 days in a year, they might not get these ten paid leaves. Absence due to sickness does not come under this rule.
- In most cases, the employees must take all these leaves together. In a few exceptional cases, the employees can request their employers to take these leaves in more than one period.
- If the employees don’t avail of the leaves, they can demand pay equivalent to their salary instead of the leaves.
- The employees in Fiji can take a day off from work on 11 public holidays declared by the federal government.
- If any public holidays fall on a Sunday, the following Monday is a holiday for all employees.
- If an employee is associated with the company for more than three months, they can take sick leave if they cannot work due to any sickness.
- All employees can take ten days of sick leaves in a year. However, the employees have to inform their managers before taking such leaves.
- Employees cannot accumulate sick leaves as they lapse once the year ends.
- If a female employee has been employed in the company for at least 150 days in the last nine months before the expected due date, they are entitled to maternity benefits in Fiji.
- Female employees can take a maternity leave of 98 consecutive days by providing proof of the expected delivery date.
- Employees who decide to extend their maternity leave period will not be paid for the additional leaves.
- If the employee chooses to work before or after the due date, they must furnish a certificate that states they are fit to work.
- A male employee can take 5-day paternity leave post the birth of their child.
- Employees can only take paternity leave if they have been associated with the company for over three months.
- Also, the employee must furnish a certificate stating the due date of the child’s birth.
- Most companies pay an annual bonus to their employees in Fiji. However, the conditions and the bonus rate differ from company to company.
Employee Benefits for Expatriates
Employees from other countries are entitled to the same employee benefits in Fiji as local employees. Expats can take advantage of health insurance and travel stipends while working in Fiji, which all companies generally provide. In addition to the benefits required, expats also have access to the following benefits:
- Accommodation or lodging costs
- Travel costs
- Meal allowances
Employees can negotiate with their employers to get a few additional benefits. However, employers must include these benefits in the employment contract so they can be duly delivered later.
How are Employee Benefits Taxed in Fiji?
All the fringe benefits or non-cash benefits offered to employees working in Fiji are taxable. A fringe benefits tax is levied on these in-kind employee benefits in Fiji. These fringe benefits primarily include allowances like mobile, fuel, water, etc. However, the fringe benefits tax is levied on the employers, and the companies cannot recover these taxes from their employees.
The fringe benefits tax rate is 20%, which applies to the taxable value of all the fringe benefits offered to the employees. It includes nine fringe benefits like housing, loans, meals, motor vehicle, etc. The value of these benefits is assigned based on the market value of these offerings.
Restrictions for Fiji Benefits and Compensation
Like in other economies, the majority of benefits are taxable in Fiji. To determine how much tax the employee will owe, you must know the monetary value of these perks. The employer’s responsibility is to timely deliver all tax payments to the appropriate federal agencies and tax authorities.
Before creating an employee compensation policy in Fiji, be sure that your company is legitimately incorporated in Fiji and that you can conduct business there. Companies must pay their employees the minimum wages required by their respective industries. Fiji’s labor laws should also be followed while crafting the benefits and compensation package.
Supplemental Benefits for Employees in Fiji
Fiji offers a plethora of supplemental benefits to its employees in addition to mandatory benefits. These benefits act as an extrinsic motivator for the employees, who might want to stick around for a long time when they have access to additional benefits. Let’s try to understand some of the supplementary benefits offered to employees in Fiji.
Apart from offering regular medical benefits for employees in Fiji, employers provide vision and dental insurance add-ons to their employees. The additional cover helps them bear the cost of any significant eye treatments and dental procedures.
Life and disability insurance
This is one of the most common supplemental insurance offered to employees across organizations in Fiji. The amount given to the employee is based on the total incapacity to work. A registered medical practitioner assesses this incapacity. Life insurance is offered to most employees in Fiji to safeguard the employee’s family.
Several companies in Fiji offer cars or any other mode of transport to their employees so that they can commute to work without any hassle. In some cases, the employers cover the fuel charges of the employees instead of giving them a car.
Fiji is an employee-friendly country. Hence, companies try to offer benefits that keep employees happy and satisfied. Meal vouchers are one such benefit employees receive. These vouchers cover the costs of any meals the employee has while at the office.
How Multiplier Can Help with Benefits Management in Fiji
Finding the right employees while starting a business abroad may take time and effort. Employers must adhere to local laws and ordinances when drafting employment contracts and providing employee benefits. A global PEO platform like Multiplier can assist you with this approach.
Multiplier assists you in adhering to Fiji labor rules and gaining access to knowledgeable and trained staff. Our skilled experts can assist you in efficiently managing the workforce without creating a subsidiary in the country. You can bring down your employment costs and venture into new markets when you do so.