Senate defers passage of COLA increase

Senate Bill No. 7-253-SD1 was calendared for third reading in last week’s session of the Senate.The bill was earlier introduced by Sen. Hokkons Baules who recommended that the COLA be increased in response to high energy prices.The bill said in developing a plan and schedule for the COLA, lawmakers should consider the minimum standard of living which is compatible with decency and health, the general economic condition, compensation practices, conditions of employment in the public service, the cost of gasoline and electricity.The bill also included the provision which levies a tax of $50 – a 50 percent increase from the current fees collected.However the new fees will not cover Palauan citizens and their spouses who will only pay $10 departure tax.The bill said that from this amount, $30 will be deposited into a separate account and used solely for the purpose of providing COLA for the salaries of employees.The Senate Committee on Ways and Means chaired by Sen. Alan Seid endorsed the bill stating that benefiting from the COLA increase will be employees of the state government and the National Public Service System who receive an annual salary of $9,000 or less.The bill they said is a necessary and effective step to help alleviate the COLA that is increasing due to high energy cost.