Koror, Palau – Palau’s Senate passed a $13 million supplemental budget for fiscal year 2024 (FY 2024), which also raises the minimum wage by 75 cents per hour.
The measure came after both the House and Senate failed to agree on their own versions of the supplemental budget bill. A conference committee, comprised of members from both houses, reached a compromise that included most policy riders attached to the bill, most notably the minimum wage increase.
The $13 million increases the FY 2024 budget from $119 million to $132 million, surpassing pre-pandemic funding levels.
The approved bill includes several policy riders, including:
- Minimum wage increase: The minimum wage will increase by 75 cents per hour.
- Child subsidy increase: The child subsidy rate will increase (specific amount not mentioned).
- Tax refund eligibility expansion: Individuals earning between $15,000 and $30,000 annually will now be eligible for tax refunds.
- Refund for senior citizens: Palauans 60 years and older with no other income sources will receive a $480 refund.
One amendment, calling for shared tax revenue between the national and state governments, was removed from the final bill.
The bill now heads to the House for a final vote. With most delegates in the conference committee supporting the measure, passage is expected.