KOROR, Palau (Dec. 10, 2024) — President Surangel S. Whipps Jr. has submitted a bill to the Olbiil Era Kelulau (OEK) proposing significant wage increases for government employees, an update to the Executive, Professional, and Special (EPS) pay scale, and the reallocation of funds for critical projects and national events.
The proposal includes a 10% salary increase across all government branches to address wage compression and improve the recruitment and retention of skilled professionals. Unlike past fixed-amount raises, the percentage-based adjustment aims to ensure equitable treatment and reward career advancement.
“Wage compression has eroded incentives for employees to take on greater responsibilities or pursue specialization,” Whipps wrote in the transmittal letter. “This approach better reflects market realities and ensures equitable compensation for all employees.”
The bill also seeks to modernize the EPS wage scale, which has remained unchanged for nearly three decades. Whipps emphasized that without adjustments, Palau risks losing skilled professionals, such as attorneys and IT specialists, to more competitive opportunities abroad.
“Updating the EPS scale aligns with our commitment to delivering high-quality services to our citizens while maintaining fiscal responsibility,” Whipps stated.
In addition to wage measures, the bill addresses funding needs for the Minatobashi Bridge Project, which faced delays due to lapsed appropriations. Whipps requested $600,000 to meet grant conditions set by the Government of Japan, ensuring construction proceeds without further delays.
The proposal also includes $70,000 for the January 2025 inauguration and government transition. Whipps highlighted the need for additional resources due to anticipated higher costs compared to the 2020 inauguration, held during COVID-19 border closures.
“This reallocation ensures adequate preparation and utmost safety for our guests and citizens during significant national events,” Whipps explained.
The OEK is expected to deliberate on the proposal in the coming weeks.