KOROR, Palau — Two legal riders included in a recent amendment to Palau’s Corporate Registry law have made significant changes, addressing election procedures and government salaries.
The amendment, known as RPPL 11-40, was signed into law on Dec. 26, 2024. Its primary purpose was to create a funding mechanism for Palau’s online corporate registration system and clarify certain provisions under RPPL 11-10, including those related to credit unions, cooperatives, and church entities.
However, two additional amendments, unrelated to corporate registration, were included in the bill and are expected to have broader implications.
Runoff Election Procedures Amended
One rider modifies election laws under 23 PNC §1551, clarifying the procedures for handling tie votes. Previously, the law mandated a runoff election in case of a tie but did not specify whether additional runoffs could be conducted if the tie remained unresolved.
The new amendment explicitly permits successive runoff elections until a tie is broken, allowing the Palau Election Commission to continue elections beyond the initial 20-day period following a general or special election. This change will impact the current electoral deadlock in Ngardmau State, where no candidate has yet secured a majority in the runoff for a delegate seat.
The amended law states:
“In the event any runoff election conducted under this Section or Section 1606 fails to produce a plurality winner, such that no candidate may be certified as being elected President, Vice President, Senator, or Delegate in the said runoff, the Election Commission shall conduct, no later than twenty days from the date of [a] runoff election failing to produce a plurality winner, (a) further runoff election(s) as needed.”
This clarification is expected to facilitate the completion of the electoral process in Ngardmau State.
Government Salaries Adjusted
The second rider introduces a 10% salary increase for all government employees, effective Oct. 1, 2025. The adjustment is projected to increase government payroll expenditures by $6 million annually.
The pay raise represents the first significant adjustment to government salaries in several years and comes amid discussions about aligning compensation with inflation and living costs.
Quick Passage Highlights Urgency
RPPL 11-40 was signed into law shortly after its passage, reflecting the urgency to address the tie vote in Ngardmau and the pending need for election procedures to proceed.
While the primary focus of RPPL 11-40 was to improve the corporate registration system, the inclusion of the two riders adds new dimensions to the law, influencing both electoral processes and government payroll policy.