The president of Palau has announced a temporary shift to a 72-hour pay period for national government employees, rather than an 80-hour pay period, beginning this week to prevent a government shutdown.
Palau’s national congress, the Olbiil Era Kelulau, enacted a continuing budget on Oct. 1, which allows the government to operate at fiscal 2025 funding levels until Dec. 31.
However, salary increases have caused expenses to rise, and President Surangel S. Whipps Jr. has said available funds could be exhausted unless work hours are adjusted.
In a memorandum to employees, Whipps said workers are encouraged to report for a full 80-hour pay period. However, any pay beyond 72 hours will only be provided as back pay if approved by lawmakers in a future budget.
The president said no employees will be disciplined for not working beyond 72 hours during the temporary adjustment.
“We understand that this reduction is difficult for families, especially during the holiday season,” the president stated in the memo. “It is not a decision we take lightly. However, this approach is the most responsible way to protect the government from running out of funds entirely, which would cause a far more severe disruption to public service and employee income.”
The president said he remains hopeful that the OEK will work quickly to pass a national budget.
