The Fiji Commerce & Employers Federation (FCEF) has presented its final Position Paper on Meal Allowance increase and standardisation, to the Chair and Union representatives of the 10 Wages Councils.

The federation was forced to revise its position due to a shift in the Government’s initial proposal in support of Union Representatives. This change was made without consultation with employers or providing evidence, violating ILO Convention 144 on tripartite consultation.

Early this year, FCEF held extensive consultations with companies that fell within the ambit of the 10 Wages Councils. The consultations found that:

• 95% of employers either provide meals directly or pay through payroll;
• workers rarely purchase meals independently during overtime;
• overtime is pre-scheduled and rostered – not spontaneous 
• This is a direct cost to employers – not a reimbursement system.

Consultations also uncovered challenges within specific sectors. For example, the Security Sector struggles to find enough workers for standard 8-hour shifts, resulting in common 10 to 12-hour shifts. Additionally, the nature of the job prevents workers from leaving the premises to buy food, creating unsustainable costs for businesses.

The Federation’s position is conditional but aligns with International Labour Organization (ILO) Convention 131 on minimum wage fixing and ILO Recommendation 135 on gradual implementation. Therefore, FCEF proposes that the allowance should be implemented with a clear framework for gradual increases over the next three years.

FCEF has proposed the following phased increases:

• $9.00 from October 1, 2025 
• $10.00 from October 1, 2026
• $11.00 from October 1, 2027

This move reflects employers’ understanding of market conditions, increasing cost of doing business and its dedication to constructive dialogue and sustainable solutions, that recognise both worker welfare and business realities.

“Workers have a legitimate grievance about wage stagnation, which we acknowledge,” says Edward Bernard, FCEF CEO. “In good faith, we have moved significantly from our original position of $7.50 to support a gradual increase up to 100% over three years. Given the unprecedented wage increases we have seen recently in minimum wage, corporate tax, etc,  it is essential to adopt a viable solution that also ensures business sustainability.”

At the recent ILO wage-setting conference in Colombo, Mr. Arvind Maharaj, the FCEF Wages Council lead, presented Fiji’s wage data to Asia-Pacific representatives. The room fell silent when he revealed that Fiji’s minimum wage has risen by 115% since 2015 – from $2.32 to $5.00 – and by 86.6% in the past 36 months (from $2.68 to $5.00).

No other country globally exceeds 20% over similar periods. This places Fiji as having the highest wage increases worldwide – a fact confirmed at the ILO conference.

FCEF’s position is informed by extensive analysis of the Consumer Price Index (CPI) and alignment with international labour standards under International Labour Organization (ILO) Conventions 131, 135, and 144. This evidence-based approach balances workers’ legitimate need for fair compensation against the practical realities jeopardising business viability – particularly for micro, small, and medium enterprises (MSMEs) that represent a large portion of Fiji’s economy.

Arvind Maharaj, Chairperson of the FCEF Wage Council, adds, “Our evidence-based proposal delivers substantial and fair increases to workers while preserving the businesses that employ them. This is not about winning or losing – it’s about creating a sustainable framework that works for everyone.”

Other demands put forward by FCEF in its final proposal include:

• standardisation of meal allowance across all sectors and regular reviews tied to relevant economic indicators. 
• reverse 2017 threshold amendments (violated ILO Convention 144 – no tripartite consultation)
• return to “in excess of 2/3 hours” from “2/3 hours or more”
• separate Hotels from stand-alone restaurants (like Buses and Taxis separation)
• security sector: 3-hour threshold for operational viability and
• future reviews to be every 3 years tied to CPI, economic indicators and evidence-based adjustments only.

FCEF calls on the tripartite partners – Workers representatives and Government representatives on the Wages Council to seriously consider its balanced and practical proposal, which will promote long-term business sustainability, increased employment opportunity and decent work, and contribute to economic growth.