Palikir, Pohnpei— Federated States of Micronesia President David W. Panuelo has signed a new law raising the salaries of the national government employees for the first time in 24 years.
“For decades, our nation’s public servants have seen stagnant wages while the cost of living has increased dramatically,” Panuelo said.
“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.”
Congressional Act 21-241, now Public Law 21-237, will take effect in fiscal year 2022, which will begin on Oct. 1. The president signed the bill on Monday.
Under the new law, government employees from level steps one to 14 will receive a 15 percent salary increase; pay level steps 15 to 28 will receive a 10 percent pay raise; pay level steps 29 and above will get a 5 percent increase.
Officials said implementing varying increase rates is designed to ensure that public servants on lower incomes enjoy a proportionately higher salary increase, as such an increase is “more likely to profoundly” impact their quality of life.
“A 15 percent annual salary increase for a public servant making $10,000 a year will make a huge difference for them and their families,” Panuelo said in a statement.