The President of the Federated States of Micronesia, on Monday, signed a law raising the annual salary of its government employees — the last pay raise was instituted 24 years ago.
The 21st FSM Congress passed the bill as Congressional Act 21-241. FSM President David Panuelo signed it into law as Public Law 21-237 on Monday, March 1.
The law awards an increase in the annual salary for all full-time employees of the FSM National Government’s Public Service System.
Under the law, all government employees in pay level steps 1 to 14 receive a 15 percent salary increase; in pay level steps 15 to 28, a 10 percent salary increase, and; in pay level 29 and above, a 5 percent salary increase.
According to the FSM National Government, the purpose for the difference in increases is to ensure that government employees on lower incomes enjoy a proportionately higher salary increase, as such an increase is more likely to profoundly—and positively—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,” FSM President Panuelo said in a statement.
The salary increase will take effect in Fiscal Year 2022, which will begin on October 1, 2021.