Technical Assistance Reports

Republic of Palau: Technical Assistance Report-Managing Government Employment and Compensation

March 29, 2024

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Republic of Palau: Technical Assistance Report-Managing Government Employment and Compensation, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

Upon the authorities’ request, the IMF’s Fiscal Affairs Department provided technical assistance to Palau on reforming government employment and compensation policies. Palau is facing significant challenges in recruiting and retaining qualified staff for essential public services due to emigration. The government's compensation structure has become increasingly compressed, making it difficult to recruit and retain skilled workers, particularly in the health and education sectors. The mission suggested that targeted pay increases, subject to available fiscal space, could alleviate these issues. Additionally, innovative approaches, such as merging some state government functions with the national government and facilitating the recruitment of foreign workers, could improve public service delivery efficiency. The recent establishment of the Employment and Compensation Committee (ECC) marks a significant step towards the necessary development of a medium-term strategy to address these challenges.

Subject: Employment, Human capital, International organization, Labor, Labor force, Monetary policy, Public employment, Wages

Keywords: Asia and Pacific, Authorities of the Republic of Palau, Capacity development mission, Compensation, Compression in Palau, Employment, FAD expert, Government, Government pay compression, Government workforce composition, Human capital, Jobs., Labor force, Mission chief, Pacific Islands, Public employment, Public services, Recruitment, Republic of Palau, South Asia, Wage, Wages

Publication Details

  • Pages:

    39

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Technical Assistance Report No. 2024/027

  • Stock No:

    TAREA2024027

  • ISBN:

    9798400268519

  • ISSN:

    3005-4575