SALARY INCREMENT FOR CIVIL SERVANTS AND TAX IMPLICATIONS

SALARY INCREMENT FOR CIVIL SERVANTS AND TAX IMPLICATIONS

As approved in the FY2024-2025 Budget, civil servants will start receiving their increased pay from this week. Pay increments range from around 7 percent to 20 percent and is effective from 1 August 2024. Following the increase in salaries, civil servants will note a temporary spike in tax deduction for their first and second pay (Pay 16 and 17 of 2024). However, the income tax deductions will reduce from the subsequent pays and the payroll system will ensure that the tax payment for the entire 12 month payroll period is exactly what an individual should pay based on his/her annual salary and the current PAYE tax schedule. We wish to assure all civil servants that this is in line with standard PAYE calculations set by the Fiji Revenue and Customs Service. Government will always ensure that no individual is overtaxed, although there will be some fluctuations in tax deductions after a major pay increase. Further details on the salary increment is provided in the Ministry of Civil Service Circular 11/2024. Ministry of Finance 07 August 2024.