Palau lawmakers consider paid Parental leave, funding remains Key obstacle

Worsening global economic conditions expect to slow economic growth in the Pacific
August 2, 2025

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Palau lawmakers consider paid Parental leave, funding remains Key obstacle

By: Faith Chen

KOROR, Palau — A proposal in the House of Delegates to provide six weeks of paid maternity and paternity leave is drawing both public support and concerns about how such a program would be funded.

The bill, commonly referred to as the Fraternity Leave Bill, would grant paid leave to new mothers and fathers in both government and private sectors. Lawmakers say the intent is to allow parents to spend more time with their newborns during the first weeks of life.

“It’s about bonding a family together — giving both parents the time they need to be present for their newborn’s critical first weeks,” said Rebecca Ngirchemaet, delegate from Ngchesar, during ongoing House deliberations.

Supporters argue the measure would modernize Palau’s labor policies and strengthen family ties, while opponents have expressed concerns about the costs to small and private businesses.

The government is prepared to cover paid leave for its own employees, but finding a sustainable solution for private employers remains a sticking point. Small business owners say they lack the financial resources to cover extended paid leave without support.

“We want this bill to be fair to everyone — whether you work for the government, a large company, or a small business,” Ngirchemaet said. “It’s important that both new and experienced parents feel supported, and that the baby can feel the presence of both mother and father from day one.”

Lawmakers are exploring funding mechanisms that would spread the costs without placing an undue burden on employers. Debate has been prolonged, with no final vote yet scheduled.

If adopted, the bill would represent a major shift in workplace policy in Palau, giving parents more financial security and time to focus on their families during the early months of a child’s life.

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