How to Run Payroll in Fiji: Employment Taxes & Setup

Milani Notshe

Research Specialist

Last Updated

February 13, 2026

In This Guide

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Running payroll in Fiji involves many moving parts before your team sees money land in their accounts. Each month you need to calculate gross-to-net correctly, apply statutory withholdings and employer contributions, issue compliant payslips, plus file and remit on schedule. If anything slips through the cracks, you could face penalties, back-pay exposure, and unnecessary friction with your people.

If you’re hiring in Fiji, whether you’re building a local presence or expanding your global footprint, this guide is for you. We’ll walk through the choices and compliance requirements that have the biggest impact on your speed and risk, from entity vs. no-entity hiring to worker classification and the statutory bodies you’ll interact with along the way. By the end, you’ll know exactly what to expect and how to keep payroll running smoothly, wherever you’re hiring.

Key Takeaways

Payroll cycle: Employers in Fiji typically process payroll on a weekly, biweekly, or monthly basis, with monthly cycles being common.

Tax filing: PAYE income tax and Fiji National Provident Fund (FNPF) contributions are generally reported and remitted monthly.

Employer taxes: Employer obligations mainly include FNPF contributions, calculated as a percentage of employee earnings.

Tax year: Fiji’s tax year follows the calendar year, from January 1 to December 31.

Payroll processing methods: Payroll is commonly handled in-house or outsourced to providers experienced with Fijian PAYE and FNPF compliance.

How to Choose Your Payroll Structure in Fiji

Expanding into Fiji? Building a compliant payroll setup involves much more than simply paying salaries. You’ll be responsible for employment compliance, monthly tax and social declarations, and mandatory benefits. Even small delays in filings or payments can lead to real penalties.

You have several operating models to choose from to make this easier. The right one depends on your legal footprint, your appetite for risk, and how quickly you need to start hiring. Let’s break down the main options and when to use each.

1. No Local Entity in Fiji: Use an Employer of Record (EOR)

If you don’t yet have a legal entity in Fiji, an Employer of Record is usually the fastest and lowest-risk way to hire. An EOR becomes the legal employer on paper, provides locally compliant employment contracts, and manages payroll under local regulations, while you continue to direct the work and manage performance.

This model is ideal for:

Testing a new market
Hiring your first team members
Scaling a distributed workforce without building local infrastructure,

Why it’s the fastest and least risky option:

You skip the lengthy process (and cost) of setting up an entity.
All local registrations, monthly declarations, and statutory payments are handled by a provider already set up in-country, dramatically reducing your compliance risk.

2. You Have a Fiji Entity: Run In-Country Payroll

If you already operate a local entity, or you’re planning to establish one, running payroll directly gives you maximum flexibility and control. You can set your own policies, design benefits, and align payroll closely with your finance and internal approval processes. But this also comes with greater operational responsibility.

What you’re responsible for:

Registering with relevant authorities and maintaining compliance with statutory bodies (often involving CSS/IPRES or similar local institutions).
Accurately calculating and remitting payroll taxes and contributions every month – plus handling year-end requirements.
Issuing compliant payslips and maintaining audit-ready payroll documentation.

When this option makes sense:

You’re hiring at scale and want payroll fully “in-house,” even if you partner with a local provider for execution.
You need deeper integration with finance systems or custom benefit structures.

If you want to keep the entity but offload the admin, many employers choose global payroll services to handle calculations, filings, and payments while they remain the legal employer.

3. Contractors Only: Use Contractor Management

Paying independent contractors is often simpler than setting up full payroll, especially for short-term or highly specialized work.

However, you need to watch out for misclassification risk. In Fiji, as in many jurisdictions, someone may legally qualify as an employee based on how they work – not what their contract says. If they’re under your direction, working like an employee, you may be responsible for full employer obligations.

When contractor payments work well:

You need specialised expertise for a defined scope or timeframe
The contractor operates independently, not under your control or supervision

You can also use contractor management services to streamline compliant contracts, invoicing, and payments.

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What To Know About Payroll Processing In Fiji

Payroll in Fiji centers on Pay As You Earn (PAYE) income tax withholding, Fiji National Provident Fund (FNPF) retirement contributions, and regular reporting to the Fiji Revenue and Customs Service (FRCS). You are responsible for calculating tax on each pay run, deducting employee contributions, adding employer contributions, and remitting everything on time to the authorities. Getting these calculations right is essential because FRCS closely monitors employer compliance through monthly summaries and annual reconciliations.

Non-compliance can trigger penalties, late-payment interest, audits, and serious trust issues with your employees if net pay or benefits are wrong. Rules can vary by income thresholds and employee residency status, and some concessions apply to specific sectors or incentive regimes, so your team must map each worker to the correct tax treatment. This guide walks you through the core calculations, filing procedures, payment deadlines, and setup decisions so you can run Fiji payroll confidently in 2026.

Types Of Payroll Taxes In Fiji

In Fiji, payroll taxes are built around PAYE income tax, compulsory FNPF retirement savings, and the Social Responsibility Tax (SRT) that applies to higher-income earners. Each obligation has its own calculation rules, rates, and filing cycle, and FRCS expects employers to withhold and remit accurately every month.

Pay As You Earn (PAYE) Income Tax

PAYE is the primary income tax withholding system administered by FRCS, and it applies to employment income based on progressive tax brackets from 0% up to 20%. Employees bear the tax cost, but you must calculate and withhold the correct amount from each salary payment and remit it monthly, typically by the end of the following month, using FRCS schedules and electronic filing where available.

Because PAYE is the main source of personal income tax, FRCS enforces it strictly with penalties and interest for late or underpaid amounts, and it can require reconciliations or audits if your monthly schedules do not match annual totals. In practice, most employers use payroll software or an Employer of Record to apply the current FRCS tax tables and ensure that the correct 0%–20% rates are applied to each income band.

Fiji National Provident Fund (FNPF) Contributions

FNPF is Fiji’s mandatory pension scheme, and both employers and employees contribute a percentage of gross wages to the fund. As of 2026, the standard contribution is 10% from the employer and 8% from the employee, calculated on ordinary wages without a high-income cap, and you must remit these contributions monthly to FNPF along with contribution schedules.

Failure to pay FNPF on time can result in surcharges, interest, and potential legal action, and FNPF can audit your payroll records to verify that all eligible employees are covered. Because FNPF is a core employment benefit in Fiji, consistently paying the full 18% combined rate is also critical for employee retention and trust.

Social Responsibility Tax (SRT)

Social Responsibility Tax is an additional tax on higher-income individuals that you must withhold through payroll once an employee’s annual income exceeds the FRCS SRT threshold. The SRT rate is typically 10% on the portion of income above the threshold, and it is paid by the employee but withheld and remitted by you together with PAYE on a monthly basis.

Although SRT affects a smaller group of employees, FRCS expects precise withholding and separate reporting lines so that high earners are correctly taxed. Under-withholding SRT can lead to back taxes, penalties, and interest, so your payroll system should automatically apply the 10% SRT rate once an employee’s projected annual income crosses the relevant band.

How To Pay Employees In Fiji

Most employers in Fiji pay salaries via electronic bank transfer in Fijian dollars (FJD), using local bank accounts for both the company and employees. While cash payments are not prohibited, they are uncommon for formal employment because they complicate record-keeping and FRCS reporting, and they make it harder to prove that statutory deductions were correctly handled.

Fiji’s employment practice is typically monthly or fortnightly pay, and you should set a consistent payday in the employment contract and honor it to avoid disputes. If you do not have a local entity, you can use an Employer of Record to hire and pay staff compliantly, or you can work with a local payroll partner once you have registered an entity and obtained a Tax Identification Number (TIN) from FRCS.

Payslips should clearly show gross pay, PAYE, SRT if applicable, FNPF employer and employee contributions, other deductions, and net pay, and they should be provided at each pay cycle in written or electronic form. Maintaining accurate payslips and payroll ledgers is essential for FRCS audits, FNPF inspections, and resolving any employee queries about their take-home pay or retirement savings.

Payment Method: Use electronic bank transfers in FJD to employees’ local bank accounts for traceable and compliant payments.
Pay Frequency: Agree on monthly or fortnightly pay cycles in contracts and keep a consistent payday across your workforce.
No-Entity Hiring: Engage an Employer of Record if you lack a Fiji entity but need to hire and pay employees compliantly.
Local Registration: If you set up an entity, register with FRCS for a TIN and with FNPF before running your first payroll.
Payslip Content: Include gross earnings, PAYE, SRT, FNPF contributions, other deductions, and net pay on every payslip.
Record Keeping: Retain payroll records, contracts, and remittance proofs for several years to satisfy FRCS and FNPF audit requirements.
Foreign Staff: Confirm residency and visa status for expatriate employees, as this can affect PAYE and SRT treatment.

Payroll Set Up Checklist (Entity Vs No-Entity)

Getting payroll set up correctly in Fiji determines how smoothly you can hire, pay, and stay compliant with FRCS and FNPF from day one. With a local entity, you run payroll directly and handle all registrations yourself, while without an entity you typically rely on an Employer of Record to shoulder those obligations on your behalf.

Choosing the right route affects how quickly you can enter the market, how much control you have over payroll processes, and which systems you use for calculations and filings. A structured checklist helps your team avoid missed registrations, incorrect tax codes, or late remittances that can lead to penalties.

Decide Hiring Model: Choose between setting up a Fiji entity or using an Employer of Record for immediate compliant hiring.
Register With FRCS: Obtain a Tax Identification Number and register as an employer for PAYE and SRT withholding.
Register With FNPF: Enroll your company and employees with the Fiji National Provident Fund for mandatory pension contributions.
Open Local Bank Account: Set up a FJD business bank account to pay salaries and remit taxes and contributions.
Implement Payroll System: Deploy payroll software or a provider that supports Fiji tax tables, FNPF rates, and FRCS reporting formats.
Collect Employee Data: Gather TINs, FNPF numbers, contracts, and bank details before the first pay run.
Define Pay Policies: Set pay frequency, cut-off dates, overtime rules, and allowances in line with Fiji employment law.
Configure Deductions: Set up PAYE, SRT, FNPF, and any other agreed deductions in your payroll system.
Test First Payroll: Run a parallel or test payroll to validate calculations before releasing live payments.
Establish Compliance Calendar: Create a monthly and annual calendar for FRCS and FNPF filing and payment deadlines.

Example Of Salary Tax Calculation

Imagine a full-time employee earning FJD 4,000 gross per month in 2026, with standard FNPF and PAYE obligations. You would first calculate FNPF contributions at 10% employer and 8% employee, then apply the progressive PAYE rates and any SRT if the annualized income crosses the high-income threshold.

The goal is to arrive at a clear net pay figure while ensuring that all statutory amounts are correctly withheld and ready for remittance to FRCS and FNPF. Using a structured step-by-step approach helps your team avoid under-deductions and keeps your monthly filings consistent.

Step 1 – Determine Gross Pay: Confirm the monthly gross salary of FJD 4,000 based on the employment contract.
Step 2 – Calculate FNPF: Compute employer FNPF at 10% (FJD 400) and employee FNPF at 8% (FJD 320) on gross pay.
Step 3 – Apply PAYE: Annualize the salary, apply the relevant FRCS tax brackets, and calculate the monthly PAYE withholding.
Step 4 – Check SRT: Assess whether the annual income exceeds the SRT threshold and, if so, calculate 10% SRT on the excess portion.
Step 5 – Derive Net Pay: Subtract employee FNPF, PAYE, SRT, and any other deductions from gross pay to arrive at net pay.
Step 6 – Prepare Remittances: Schedule payments to FRCS for PAYE and SRT and to FNPF for contributions before their due dates.

Submitting Employee Tax In Fiji

In Fiji, you submit employee taxes primarily through FRCS systems and approved banking channels, using your employer TIN and monthly payroll data. You will typically prepare a monthly PAYE and SRT schedule, confirm totals against your payroll reports, and then pay via bank transfer or online banking with the correct reference details.

FRCS Employer Registration: Ensure your business is registered with FRCS and has an employer TIN before submitting any payroll taxes.
Monthly Schedules: Generate PAYE and SRT deduction schedules from your payroll system for each pay period.
Online Portal Use: Where available, upload or file returns through FRCS electronic services using your login credentials.
Bank Transfer Payments: Pay assessed amounts via bank transfer, quoting your TIN, period, and tax type as payment references.
FNPF Submissions: Submit separate FNPF contribution schedules and payments directly to FNPF using their online or in-branch channels.
Third-Party Providers: If you use an Employer of Record or payroll provider, confirm that they handle filings and payments in your name or theirs as agreed.

Payroll Tax Due Dates In Fiji

Tax Type	Due Dates
PAYE Income Tax Withholding	Due by the end of the month following the month in which salaries are paid.
Social Responsibility Tax (SRT)	Due by the end of the month following the month in which the taxable income is paid.
FNPF Employer And Employee Contributions	Due by the end of the month following the month in which wages are paid.
Annual PAYE Reconciliation To FRCS	Due by 31 March following the end of the calendar tax year.
Annual Employee Earnings Certificates	Provide to employees and file with FRCS by 31 March following the tax year.
Employer Registration Updates	Update FRCS and FNPF records within 30 days of any material change in employer details.

Running Payroll Processing in Fiji

So, what does it actually take to run payroll in Fiji? It involves calculating monthly salaries, applying the right statutory deductions, and making sure your team gets paid accurately and on time, while staying fully compliant with local tax and labour laws.

Let’s walk through what that looks like in practice:

Monthly Payroll Workflow

Gather all the essentials: hours worked, leave taken, new joiners, leavers, and any salary or benefit changes.
Double-check timesheets, leave balances, overtime, and any variable pay to make sure everything is accurate.
Work out gross earnings, including base salary, bonuses, commissions, and allowances.
Apply mandatory and voluntary deductions, like income tax, pension contributions, benefits, and any company-specific deductions. Then, calculate net pay after all deductions.
Run internal reviews, compare with previous payroll cycles, and get the necessary approvals.
Pay employees via bank transfer and share payslips through email or your payroll system.
Send statutory payments and required reports to tax authorities.
Update your records and ensure payroll entries flow correctly into your accounting system.
Share payroll summaries with finance and address any open questions or discrepancies.

How Playroll Streamlines Processing

Keeping track of all these steps, especially in a new market, is no easy task. Regulations change, requirements shift, and it’s easy for things to fall through the cracks. Playroll makes this effortless by managing the entire payroll process for you: onboarding employees, handling calculations and deductions, issuing payslips, transferring funds in Fijian Dollar, and taking care of statutory filings and compliance.

Income Tax And Social Security In Fiji

Understanding the tax obligations for both employers and employees is crucial when operating in Fiji's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Fiji.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10%–12% on top of the employee salary in Fiji. The main statutory cost is the employer share of FNPF, with smaller additional costs arising from administration and any sector-specific levies or benefits you choose to provide.

Tax Type	Tax Rate
FNPF Employer Contribution	10% of gross wages
Accident Compensation Levy (typical payroll-related cost)	Approximately 1% of assessable payroll, varying by scheme and sector
Fringe Benefits Tax (where applicable)	20% on the taxable value of fringe benefits provided to employees
Employer PAYE Administration	0% direct tax rate but mandatory withholding and remittance obligation
Employer SRT Withholding Obligation	0% direct tax rate but mandatory withholding for high-income employees

Employee Payroll Tax Contributions

In Fiji, the typical estimation for employee payroll contributions cost is around 20%.

Tax Type	Tax Rate
FNPF Employee Contribution	8% of gross wages
PAYE Income Tax	0%–20% on taxable income according to FRCS brackets
Social Responsibility Tax (SRT)	10% on income above the SRT threshold
Additional Voluntary FNPF Contributions	Employee-elected rate above 8%, subject to FNPF rules
Other Agreed Deductions	Varies based on loans, union dues, or benefits agreed with the employee

Individual Income Tax Contributions

Individual income tax in Fiji is charged on a progressive scale, with lower earners paying 0% and higher earners paying up to 20% plus SRT where applicable. Employers withhold these amounts through PAYE, but individuals remain responsible for any additional tax due on other income sources.

Income Bracket	Tax Rate
0 – 30,000 FJD	0%
30,001 – 50,000 FJD	18%
50,001 – 270,000 FJD	20%
Above 270,000 FJD	20% plus 10% SRT on income above the SRT threshold

Pension in Fiji

Pension in Fiji is primarily delivered through the Fiji National Provident Fund, which is funded by compulsory employer and employee contributions on wages. Employees can also make additional voluntary contributions to increase their retirement savings, subject to FNPF rules on withdrawals and investment options.

Managing Common Payroll Challenges in Fiji

Global employers operating in Fiji often encounter unique payroll challenges that can affect compliance and efficiency, like navigating evolving tax laws and managing employee data. With a need for real-time accuracy, modern organizations must develop strategies to overcome these challenges effectively. Below, we explore some of the most common payroll hurdles and provide actionable solutions to streamline payroll processes in Fiji.

Maintaining Accurate And Detailed Payroll Reports

Maintaining accurate global payroll reports is often challenging due to currency exchange complexities, data integration issues, and the need to keep employee information up-to-date –including tax information, hours worked, leave balances, and any changes in salary or job status. Generating accurate reports is easy with a comprehensive payroll automation tool that consolidates fragmented data sources, and can keep track of employee payments and deductions.

Keeping up with ever-changing tax laws & Compliance Laws

In Fiji, tax laws and compliance regulations can change frequently, presenting a significant challenge for global employers. Monitoring updates to federal, state, and local tax codes is crucial to avoid non-compliance and costly penalties, but requires significant time and resources. Partnering with local experts or a reputable global HR platform is an effective way to maintain compliance. These services can help employers stay compliant with evolving regulations while freeing up time for more strategic work.

Consolidating Multi-Vendor Payroll Analytics

Managing payroll across multiple vendors often leads to fragmented data and inefficiencies, making it difficult to consolidate analytics. These challenges can hinder decision-making, especially when trying to gain a clear view of workforce costs and trends. To address this, organizations can invest in a centralized payroll management system that unifies data from multiple vendors. A consolidated platform simplifies payroll tracking, ensures data accuracy, and provides actionable insights into payroll expenditures.

Integrating Multiple HR & Payroll Systems

Global companies are prone to using multiple HR or payroll systems across regions, which can easily lead to fragmented payroll data, increasing the risk of delays and errors in employee compensation. To combat this, seamless integration between payroll and other systems is critical.

Payroll management systems that connect with existing HR and financial platforms can help streamline workflows by reducing manual inputs and ensuring that all departments operate with up-to-date, accurate information. In turn, this helps guarantee on-time, accurate payroll, boosting employee satisfaction.

How Playroll Can Streamline Payroll & Taxes In Fiji

Expanding globally is an exciting milestone for any company, but it comes coupled with complex payroll challenges. It doesn’t have to be complicated. At Playroll, our easy-to-implement global payroll management software combines automation with hands-on support to make global payroll truly simple. Here's how Playroll helps:

Multi-Vendor Integration: Our platform syncs seamlessly with your providers and in-house systems to unify global payroll services in one platform.
Standardize Payroll Processes: Unify your operations in one dashboard to ensure payroll is running smoothly globally, with advanced approval flows and reports.
Improve Governance & Compliance: Improve compliance by centralizing all your compliance tasks and processes. Easily track your payment obligations, with digitized audit trails.
Advanced Reporting: Access and configure your data, your way, with a comprehensive suite of payroll analytics and reporting tools.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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