The contribution rate of the Vanuatu National Provident Fund (VNPF) will increase to 12 percent starting next month. This follows a new amendment to the law passed by Parliament earlier this year.

Under the new rate, employees will contribute 6 percent, while employers will also contribute 6 percent each month.

In a statement released by VNPF, it said the current contribution rate of 8 percent will end at the close of this month, December.

When the amendment was presented to Parliament, VNPF stated that the increase in member contributions is intended to strengthen the fund and ensure better protection and benefits for members in the future, particularly at retirement.