Key Facts: Palau Wages
- Country
- Palau (PLW)
- Continent
- Oceania
- Currency
- United States Dollar (USD)
- Minimum Wage
- $3.50 /hr
- Average Gross Monthly Salary
- $1,800 /month
- Average Gross Annual Salary
- $21,600 /year
- Median Individual Income
- $12,000 /year
- Standard Work Week
- 40 hours
- Data Source
- Republic of Palau Ministry of Finance / Pacific Community (SPC) / Pacific Labour Market Information System
- Last Updated
- 2026-02-25
Palau — Average Salary & Wages
United States Dollar (USD) Data verified Jan 2026 Sources
The average salary in Palau is
$21,600 a year
But half of all workers earn less than $12,000 .
The average is lifted by bonuses and high earners. Most workers earn less than that.
The minimum wage in Palau is $3.50/hr as of 2026. The average gross monthly salary is $1,800 ($1,800 USD). The median monthly income is $1,000 ($1,000 USD).
Estimated from 2020 census data and World Bank GNI figures. Palau uses the USD as its official currency. Tourism workers (many foreign nationals) earn lower wages; government sector provides more stable incomes. World Bank classifies Palau as high income but domestic median is modest.
Estimated average for formal sector workers in government, tourism, and services. Tourism sector wages vary widely. Foreign workers, who constitute a large share of the service workforce, often earn lower wages than Palauan citizens. Government employment provides relatively stable wages.
Minimum Wage Trend
• PPP ADJUSTED
In Palau, the minimum wage has the purchasing power of $4.07/hr in the United States, adjusted for local cost of living using the World Bank PPP conversion factor.
In Context
At minimum wage, a full-time worker in Palau earns $607/mo. That is 34% of the average gross salary.
- Monthly (full-time)
- $607 at min. wage
- Share of avg. salary
- 34% gross, before tax
Wage Breakdown
- Hourly
- $3.50
- Daily
- $28Hourly rate × 8 hours
- Monthly
- $607Hourly rate × 40 hours/week × 52 weeks / 12 months
Palau's minimum wage of $3.50/hour applies to government sector workers. The foreign worker population (estimated to be 30-40% of the workforce) is employed primarily in tourism, construction, and retail under individual employment contracts that may vary from the statutory minimum. The COVID-19 pandemic had a severe impact on Palau's tourism-dependent economy (2020-2022) but recovery has proceeded with Taiwan travel bubble arrangements and resumed international flights. The effective date is an estimate; the rate has not been confirmed as recently revised.
Work Week
- Standard
- 40 hrs/wk
- Maximum
- 48 hrs/wk
- Overtime
- 1.5x pay
Palau labor law sets a standard 40-hour workweek. English and Palauan are the official languages. Palau is in free association with the United States and follows broadly similar labor frameworks for the formal public sector. Tourism and hospitality workers often work irregular hours per collective or individual agreements.
How Palau Compares
| Metric | Palau | Oceania Avg. | Oceania Highest |
|---|---|---|---|
| Min. wage (USD equiv.) | $3.50/hr | $4.78/hr | $18.22/hr (Australia) |
| Avg. salary (USD equiv.) | $1,800/mo | $1,346.08/mo | $5,397.97/mo (Australia) |
Countries with Similar Minimum Wages
| Country | Min. Wage /hr (USD) |
|---|---|
| Marshall Islands | $3.50 |
| Albania | $3.51 |
| Turkey | $3.53 |
| Bosnia and Herzegovina | $3.46 |
| Saint Kitts and Nevis | $3.33 |
| Palau | $3.50 |
Cost of Living
Wages tell half the story. See purchasing power, prices, and quality-of-life context for Palau on our sister site.
Cost of living in Palau on costofliving.is →Frequently Asked Questions
What is the minimum wage in Palau?
The minimum wage in Palau is $3.50/hr, effective since 2015-01-01. Palau's minimum wage of $3.50/hour applies to government sector workers. The foreign worker population (estimated to be 30-40% of the workforce) is employed primarily in tourism, construction, and retail under individual employment contracts that may vary from the statutory minimum. The COVID-19 pandemic had a severe impact on Palau's tourism-dependent economy (2020-2022) but recovery has proceeded with Taiwan travel bubble arrangements and resumed international flights. The effective date is an estimate; the rate has not been confirmed as recently revised.
What is the average salary in Palau?
The average gross monthly salary in Palau is $1,800 (approximately $1,800 USD). Estimated average for formal sector workers in government, tourism, and services. Tourism sector wages vary widely. Foreign workers, who constitute a large share of the service workforce, often earn lower wages than Palauan citizens. Government employment provides relatively stable wages. Source: Pacific Community (SPC) / World Bank estimated (formal sector) (2022).
How many hours is the standard work week in Palau?
The standard work week in Palau is 40 hours, with a legal maximum of 48 hours. Overtime is paid at 1.5x the normal rate. Palau labor law sets a standard 40-hour workweek. English and Palauan are the official languages. Palau is in free association with the United States and follows broadly similar labor frameworks for the formal public sector. Tourism and hospitality workers often work irregular hours per collective or individual agreements.
How has the minimum wage in Palau changed over time?
The minimum wage in Palau has changed as follows: $3.50 in 2015, $3.50 in 2020, $3.50 in 2024. This represents 3 recorded adjustments.
What is the average salary in Palau in USD?
The average gross monthly salary in Palau is approximately $1,800 per month in US dollars, based on current exchange rates. Actual purchasing power may differ due to local cost of living.
How does Palau's minimum wage compare to the Oceania average?
Palau's minimum wage ranks #7 out of 15 countries with statutory minimum wages in Oceania, placing it near the median for Oceania.
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