KOROR, Palau (Dec. 31, 2024) — President Surangel Whipps Jr. signed into law RPPL 11-40, a comprehensive amendment to the government salary structure, introducing a 10% across-the-board salary increase for all civil service and contract employees. The new salary schedule, set to take effect on October 1, 2025, will also feature new pay grades and revised minimum salaries for specialized roles.
The government estimates the payroll increase will cost an additional $6 million annually.
Key Changes:
- 10% Salary Increase: All employees under the new pay scale will receive a 10% raise in their annual salaries starting October 2025.
- New Pay Grades: Two additional grades, EPS1 and EPS2, have been created for specialized executive, professional, and contractual roles.
- Minimum Salary for Medical Doctors: Full-time civil service doctors working with the Ministry of Health and Human Services will earn a minimum annual salary of $65,000, provided they hold an accredited M.D., M.B.B.S., or equivalent degree.
- Judicial and Executive Branch Salaries: Adjustments include capped or tiered salary scales for judges, justices, and top government officials. For example, the Chief Justice’s salary will be capped at $99,000, while the President will earn an annual salary of $99,000.
Employees currently under contract before the transition date will maintain their current rates unless defined as eligible for the new EPS grades. The amendment also specifies that step increases will not apply to EPS employees or certain non-public service system employees.
“This law gives flexibility so ministers can hire people with skills and talents we need,” said President Whipps of the new amendment to the government pay scale.
Since 2013, the government minimum wage has increased by 100% with the initial minimum wage at $2.50 USD and now, under the new law will be $5.50.
With the additional $6 million payroll cost, the government claims the change addresses competitive salary requirements, incentivizes specialized talent, and provides fair compensation for public servants. (By: L.N. Reklai)