There are reports the Niue government intends putting public servants on four day weeks but pay them for five, in lieu of a promised wage increase.
The public service in Niue is by far the biggest employer with successive governments looking at ways to cut costs and reduce the wage bill.
Opposition MP, Terry Coe, says while the premier, Toke Talagi, has not mentioned the scheme in the Fono, he did outline it on local television.
Mr Coe says it will mean most workers being paid overtime.
"He promised them a wage increase earlier on in the year. Now they say they haven't got the money for it, so this is a way out. But Friday is a busy day like for the airport etc, you have still got to teach kids on Friday, you have still got to do your telecoms and everything else, so those people would all be on overtime."
Niue MP Terry Coe.
Mr Coe says the latest financial difficulties for the island come after pensioners got a 30 percent increase in their benefits.