The CEO of the Fiji Commerce and Employers Federation Nesbitt Hazelman says the National Federation Party's plan to raise minimum wage is unrealistic.
The party said it will double the hourly minimum wage to 5 Fijian dollars, or $US 2.40 if it gets to power in next year's election.
But Mr Hazelman said he believes that proposed raise wouldn't benefit the community.
He said the National Federation Party needs to think of how this plan will affect young school leavers and first time job seekers, as they are the group struggling.
"The minimum wage should be reviewed either annually or every two years," Mr Hazelman said.
"It's currently at $2.32. The government is thinking of raising it.
We support the raise, but to raise it from $2.32 to $5.00, I don't necessarily go well with business especially those in the informal sector," he said.
"There's a bit of a misunderstanding on their part. They think that if we raise the wages to $5.00, there will be more employment. Actually it could work in the opposite direction."