Palau is an island country located in the Pacific whose main economic activity is agriculture and fishing. However, their government has employed most of its working population and has provided them with ample opportunities through the help of the United States of America. Plans of bolstering the country’s tourism are also being worked as an additional stream of income for Palau.
Major economic hubs:
Koror, Melekeok, Ngermid
Skills in demand:
Teachers, Fishermen, Administrative positions, Construction
Local Universities
The top local universities in Palau are as follows:
The following sections will be covering the basic information that employers need to know when employing local employees in the country. The following are taken from the country’s rules and regulations of employment.
Employee Contract
Employee Contracts in Palau contain the terms and conditions of employment and the employee’s vital information and obligations. It is written in the English language.
Probation Period
Probation period for Palauan employees should not exceed 6 months
Public and Provincial Holidays 2023
Date
Name
Type
1 Jan
New Year’s Day
Public Holiday
2 Jan
Day off for New Year’s Day
Public Holiday
15 Mar
Youth Day
Public Holiday
5 May
Senior Citizens Day
Public Holiday
1 Jun
President’s Day
Public Holiday
9 Jul
Constitution Day
Public Holiday
10 Jul
Day off for Constitution Day
Public Holiday
4 Sep
Labor Day
Public Holiday
1 Oct
Independence Day
Public Holiday
2 Oct
Day off for Independence Day
Public Holiday
24 Oct
United Nations Day
Public Holiday
23 Nov
Thanksgiving
Public Holiday
24 Nov
Family Day
Public Holiday
25 Dec
Christmas Day
Public Holiday
Employee Leaves
Type of Leave
Time Period
Mandatory
Annual Leave
Maximum 30 days
Yes
Sick Leave
Maximum 30 days
Yes
Maternity Leave
5 months
Yes
Payroll
Payroll Cycle
Salaries in Palau are released every two weeks.
Minimum Wage
The minimum wage in Palau is USD 3 per hour
Overtime Pay
Overtime pay rate will be based on the agreement between employer and employee, as it will be indicated in the employment contract.
Bonus
13th Month Pay
A 13th month pay is not a requirement in Palau
Employee Benefits
Below are some of the benefits that Palauan employees are entitled to:
Terminated employees in Palau will be given their final pay as their final compensation. Employers must deduct any debts or salary advances when calculating the severance pay.
Visa and Immigration
Foreign employees must secure a work visa to stay in Palau for work. They will have the option to apply for the following visas base on their nature of work:
Provisional Labor Visa
Missionary Visa
Temporary Visa
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