He said he will propose cuts based on salary brackets.
Those who earn $11,000 to $15,000 annually will suffer the most if their working hours will be reduced to 64 per pay period, said Palacios, R-Saipan.
Those who earn $15,000 or less should be spared from the severe pay cuts, he added.
Perhaps those who earn $16,000 from $18,000 can get at least a 3 percent cut, he said.
Those who earn up to $50,000 should get a 20 percent cut while those who earn higher salaries will get the biggest cut, he added.
Palacios said he understands that employees have a lot of daily expenses and other financial obligations.
If their salaries are cut by 25 percent due to the 16-hour work hour reduction, “it’s going to hurt them a lot,” he added.
He said many government employees support pay cuts based on salary brackets.
He recalled that during a recent session, a lowly paid government worker cried when given the chance to speak about the proposed austerity measure.
Palacios said deep cuts in working hours will make poor people poorer and may result in a higher crime rate.
