PALIKIR, Pohnpei—On March 1st, 2021, His Excellency David W. Panuelo—President of the Federated States of Micronesia (FSM)—signed Public Law 21-237. The law, which had previously passed the 21st FSM Congress as Congressional Act 21-241, awards an increase in the annual salary for all full-time employees of the FSM National Government’s Public Service System.

The pay increase is the first salary increase enjoyed by the National Government’s public servants in twenty-four (24) years. The salary increase will take effect in Fiscal Year 2022, which will begin on October 1st, 2021.

The law ensures that all public servants in pay level steps one (1) to fourteen (14) receive a 15% salary increase; that all public servants in pay level steps fifteen (15) to twenty-eight (28) receive a 10% salary increase; and that all public servants in pay level steps at twenty-nine (29) and above receive a 5% salary increase.

The purpose for the difference in increases is to ensure that public servants on lower incomes enjoy a proportionately higher salary increase, as such an increase is more likely to profoundly—and positively—impact their quality of life. “A 15% annual salary increase for a public servant making $10,000 a year will make a huge difference for them and their families,” President Panuelo said in a statement. 

“I would like to extend my deepest and sincerest appreciation to [the Honorable Wesley W. Simina] and all fourteen Senators in the FSM Congress for their categorical support to our Nation’s public servants,” President Panuelo said. “For decades, our Nation’s public servants have seen stagnant wages while the cost of living has increased dramatically. I am hopeful that this act of good governance can galvanize the efforts of our States of Yap, Chuuk, Pohnpei, and Kosrae to enact similar legislation to improve the quality of life for all of our deserving employees.”

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