Two years after significant raises, Fijian lawmakers to take 20 percent pay cut amid global fuel crisis

Fijian lawmakers voted last week for a 20 percent mandatory pay cut for all 55 members of parliament, making the island nation one of the first to take such action amid the global fuel supply crisis created by the Iran war.

The proposal, put forward by Prime Minister Sitiveni Rabuka, passed unanimously - although the opposition leader proposed a more agressive amendment to increase the cut to 50 percent.

The opposition's move was labelled as "pathetic" and "grand politicking" and it failed.

In May 2024, Fijian MPs approved a sharp pay rise, with ordinary parliamentarians getting up to a 138 percent increase to their base salaries, while the Prime Minister received an almost 22 percent raise.

The 20 percent reduction applies to the base salaries of MPs, Cabinet and assistant ministers, the opposition leader and the prime minister, with the aim of mitigating the impact of rising costs felt by ordinary citizens.

Fiji members of parliament salary after 20 percent reduction (in FJD):

• Prime Minister - $320,000 - $64,000 = $256,000
• Cabinet Ministers $200,000 - $40,000 = $160,000
• Assistant Ministers - $120,000 - $24,000 = $96,000
• Opposition Leader $200,000 - $40,000 = $160,000
• MPs - $95,000 - $19,000 = $76,000

Speaking in parliament on Thursday (30 April), Rabuka said the reduction would last "for the duration of the fuel crisis situation".

The prime minister said the fuel crisis has put significant pressure on the country's economy, which "remains vulnerable to external shocks" as a small island developing state.

He added that as costs increase, the burden is felt most acutely by ordinary households, rural communities and small businesses.

"At a time when government is calling on the nation to exercise restraint, efficiency and resilience, it is both appropriate and necessary that we as leaders demonstrate shared sacrifice," Rabuka said.

"This temporary adjustment to remuneration is not only symbolic, it is a deliberate signal of solidarity, accountability and responsible and responsive leadership."

However, opposition MP Premila Kumar said while she supported the move, she would have liked to see it go further.

Kumar said the conflict in the Middle East is already showing up in higher fuel prices, adding that there are conversations taking place about introducing an emergency electricity surcharge, as well as potential route cuts by the national flag carrier, Fiji Airways.

"[The] fear is that the cost of living will get worse because fuel is one single item that cuts across all sectors of the economy.

"While I support the salary reduction, I must respectfully submit that a pay cut alone does not address the extravagant government expenditure, which has resulted in high government debt."