The Fiji Labour Party has criticised the 2026/27 National Budget, accusing the Coalition Government of unfairly targeting workers through a reduction in employer Fiji National Provident Fund (FNPF) contributions while failing to provide relief from the rising cost of living.

Labour Leader Mahendra Chaudhry said the decision to reduce employer FNPF contributions by two percentage points was unjustified and would weaken workers’ retirement savings at a time when many families were already struggling financially.

He argued the budget had failed to address the increasing cost of living, pointing out that the minimum wage remained at $5 an hour despite significant increases in the prices of essential goods since it was last reviewed in April 2025.

Chaudhry also criticised the government’s decision to review the minimum wage rather than increase it immediately, claiming the move merely delayed action despite growing financial pressure on low-income earners.

Citing a Consumer Council survey conducted between March and May this year, he said supermarket prices had increased by between 15 and 35 percent, yet the budget offered no measures such as reducing VAT, cutting import duties or expanding the list of zero-rated food items to ease household expenses.

He further claimed the reduction in employer FNPF contributions primarily benefited the government, estimating it could save around $30 million through the measure.

Chaudhry questioned why workers were being asked to shoulder austerity measures when, he said, major private sector companies continued to post healthy profits and several had indicated they would maintain their existing FNPF contribution rates.

The Labour leader also accused the government of favouring businesses by providing tax concessions while failing to adequately support working families struggling with rising living costs.

The government has previously said the temporary reduction in employer FNPF contributions forms part of broader measures aimed at easing financial pressures during the current fuel crisis.