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Palau Employment Guide

Your quick guide on talent and labor compliance norms in Palau




United States Dollar (USD)


Palauan, English

Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

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

Palau Map

Local Universities

The top local universities in Palau are as follows:

Palau Uni1

Palau Community College


Local: 1

World: 15,379

Salary Data

The below table mentions some jobs in Palau with average monthly salary:

Job Title Average Monthly Salary(in USD)
Accounting and Finance 2,810
Software Engineer 2,540
Financial Analyst 3,380
Graphic Designer 1,610
Project Manager 3,120
Sales Manager 4,420
Customer Service Representative 980
Palau Talentsource

Talent Sourcing Tips

Top Local Job Boards:

CareerJet, Hire Palau, Job Island

Number of LinkedIn users:


Employing in Palau

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 1

Payroll Cycle

Salaries in Palau are released every two weeks.

Payroll 2

Minimum Wage

The minimum wage in Palau is USD 3 per hour

Payroll 3

Overtime Pay

Overtime pay rate will be based on the agreement between employer and employee, as it will be indicated in the employment contract. 


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:

  • Old Age benefits
  • Social Security
  • Healthcare Insurance
  • Paid Leaves


Employer Payroll Tax

Type of Contribution Tax Rate
Social Security Insurance 7%
Healthcare Financing 2.5%

Employee Payroll Tax

Type of Contribution Tax Rate
Social Security Insurance 7%
Healthcare Financing 2.5%

Employee Income Tax

Income Bracket Tax Rate
$0-$8,000  6%
$8,001 – $40,000 10%
$40,001 and higher 12%


Palau has replaced their VAT system with Goods and Services Tax starting January 2023. The rate for PGST will be 10%. 

Offboarding & Termination

Termination of employment contract in Palau may occur in the following circumstances:

  • Resignation
  • Reduction in the WorkForce
  • Inability to work due to medical reasons

A Notice period of 60 days will be observed for terminated employees in Palau.

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
Palau Flag
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Minimum Wage

Overtime Pay

Visa & Immigration