KOROR, Palau — President Surangel Whipps Jr. has introduced a bill proposing salary increases for the Executive, Judiciary, and members of the Olbiil Era Kelulau (OEK), aiming to “strengthen the leadership capacity of our institutions, mitigate the risks of out-migration, and enhance public trust in the integrity of our governance .”
In tandem with a recent proposal to raise the government standard pay scale, the new legislation also cites concerns over low salaries undermining morale, public trust, and the perceived value of high-ranking positions.
Under the bill, OEK members’ annual salaries would increase from $50,000 to $55,000. Judicial officials, including associate justices of the Court of Common Pleas, would see their pay rise from $65,000 to $71,500. Senior judges’ salaries would increase from $80,000 to $88,000, while the chief justice’s pay would rise from $90,000 to $99,000 annually.
For the Executive Branch, the President’s salary would increase from $90,000 to $99,000, the Vice President’s from $65,000 to $71,500, and cabinet ministers’ from $50,000 to $55,000.
If enacted, the proposed salary adjustments would take effect on October 1, 2025.
Constitutional and Public Concerns
While raising the government pay scale is broadly aimed at improving institutional capacity, the proposals for salary hikes, particularly for the Executive and Legislative branches, could encounter constitutional and public scrutiny.
Article IX, Section 8 of the Palau Constitution prohibits salary increases for OEK members during their current term. Additionally, salary hikes cannot be enacted between the date of a general election and the start of the new legislature’s term. “No increase in compensation shall apply to the members of the Olbiil Era Kelulau during the term of enactment, nor may an increase in compensation be enacted in the period between the date of a regular general election and the date a new Olbiil Era Kelulau takes office.”
This provision questions whether the proposed legislative pay raises can legally proceed.
Critics may also question the financial feasibility of the salary hikes, as the government would face increased payroll obligations if the bill passes.
President Whipps has emphasized that these adjustments are necessary to enhance governance and leadership retention, but the proposals will likely spark debate over their legal implications and alignment with public expectations.