Employers are urged to take advantage of the new employment taxation scheme:
- concession to be given – rebate of 150% on wages and salaries.
- provided only for first time employees/school leavers.
- employers must be registered with the Fiji Islands Revenue & Customs Authority.
Guidelines for employers
- eligibility
- any employer (limited liability company/partnership business/sole trader) is eligible to enter the scheme.
- only school leaver/first time job seeker is eligible for employment under the Scheme and the minimum age of employment as provided for under sections 59 and 60 of the Employment Cap 92 shall be observed.
- wage level
Any employee under the Scheme shall be paid FJ$0.72 cents per hour (the minimum level in wages council guideline for trainees).
- registration agent
- tax deduction
- FNPF contribution
- other legal requirements
- monitoring of any displacement
The Fiji Islands Revenue & Customs Authority in conjunction with FNPF and the Ministry of Labour & Industrial Relations shall ensure that any permanent employee is not displaced in order to take advantage of the one and one-half times deduction on wages or salaries
- review
The Scheme shall be reviewed at the end of two years (i.e. after 31st December, 1998) and shall only be continued if the Scheme produces the desired results or generates significant multiplier effects.
Any employer who wishes to enter the Scheme shall register with the CIR by providing such information as the CIR may require.
Any employer registered under the Scheme shall claim the deduction of one and one-half times the amount of any wages or salaries paid between 1st January, 1997 and 31st December, 1998 to a qualifying employee.
Both the employees and the employees registered under the Scheme shall contribute to the FNPF as provided for under section 13 of the FNPF Act Cap 219.
It is envisaged that the employees employed under the Scheme shall be covered under the Workmen's Compensation Act Cap. 94.
