Fiji’s national minimum wage will rise to $4.50 per hour effective from August 1, 2024, and to $5.00 per hour effective from April 1, 2025.
However, if productivity and sales do not rise, the cost of goods may increase. Jitesh Patel, the President of Suva Retailers Association, anticipates a “wait-and-see” situation, with businesses aiming to maintain prices if productivity and sales increase.
He also hopes that consumer spending will rise as the minimum wage and civil servants’ pay increase, stimulating the economy.
If this happens, retailers and businesses will try to reduce the current cost of goods sold.
Additionally, investment in the country is increasing due to low lending interest rates and the continued policies and incentives for hotel investment.
Patel foresees more investments in the construction sector and expects increased investment in construction and manufacturing industries with significant shortages.
