SHANGRI-LA'S Fijian Resort and Spa is the first tourism property in the country to establish a merit based pay increase system for its employees.
This is separate from the yearly cost of living adjustment payment, meaning workers receive two pay rises in a year.
The head of the National Union of Catering and Hospitality and Tourism Industries Employees, Daniel Urai, said a recent agreement reached between the resort management and his organisation resulted in the landmark deal.
Mr Urai also said workers at the resort stood to benefit immensely from the agreement.
"An agreement on a merit incremental system was reached," he said.
"Most employers pay either Cost Of Living Adjustment or COLA or merit-based pay but in this case, workers will receive increases under COLA and also from the merit system.
"This means that they get two pay increases in a year."
Resort general manager Michael Monks said staff members not only benefited from the merit-based pay system but also from annual bonuses.
"We're the only resort or hotel in the service industry that has a merit increase which is based purely on performance and that goes hand in hand with the fact that we're the only resort in the hospitality industry that pays an across the board bonus to all staff," he said.
"Maybe not at the same level but all our staff get a bonus and this is done to motivate staff to perform and those that perform well earn more, it is as simple as that.
"And I thank the in-house union and the national union for their input into this agreement without which it would not have been possible."