Sen. Regis Akitaya this week proposed Senate Bill No. 8-150 which will raise the minimum wage from $2.50 to $3.25 an hour.
The proposal however will only apply to Palauan citizens, foreign workers are not subjected to the minimum wage.
“The Republic’s minimum wage has remained stagnant since its establishment in July of 1998, while the price of goods has increased significantly. Therefore the OEK finds it necessary to increase the minimum wage in order to match and accommodate the republic’s increasing cost of living,” the bill stated.
The bill also proposed that any employer who violates the requirement in the minimum wage will pay a penalty of $500.
The employee can also bring a civil action suit against his employer for failure to receive the minimum wage.
It also proposed that the employee who does not receive minimum wage will be entitled to receive damages not to exceed $1,500.
There were several attempts in the past to pass a minimum wage measure, but all efforts have been shutdown.
