§ 161. Salary schedule.
(1) Salary schedule. There shall be a single salary schedule for all employees and positions in the public service. The Personnel Officer shall assign each class of positions to an appropriate salary level of such schedule.
(2) Statutory enactment. No salary schedule or change in any salary schedule for employees of the National Public Service System, except those excluded by the provisions of this chapter, shall be effective unless it shall have been enacted into law by the Congress of the Federated States of Micronesia.
Source: COM PL 4C-49 § 10(a), (b), (c); TT Code 1980, 61 TTC 10(a), (b); PL 1-47 § 17(1), (2); PL 1-71 § 1.
Cross-reference: The statutory provisions on the FSM Congress are found in title 3 of this code.
Case annotations: A basic premise of public employment law is that the rights of a holder of public office are determined primarily by reference to constitutional, statutory and regulatory provisions, not by the principles of contract which govern private employment relationships. Sohl v. FSM, 4 FSM R. 186, 191 (Pon. 1990).
Subject to constitutional limitations, the public has the power, through its laws, to fix the rights, duties and emoluments of public service, and the public officer neither bargains for, nor has contractual entitlements to them. Sohl v. FSM, 4 FSM R. 186, 191 (Pon. 1990).
The amount of compensation a public employee receives is not based on quasi-contract doctrines such as quantum meruit or unjust enrichment, but instead is set by law, even if the actual value of the services rendered by a public officer is greater than the compensation set by law. Sohl v. FSM, 4 FSM R. 186, 192 (Pon. 1990).
Public employees are only entitled to receive the benefits prescribed by law for positions to which they have been duly appointed, even if an officer or employee has performed duties or services above and beyond those of the appointed office. Sohl v. FSM, 4 FSM R. 186, 192 (Pon. 1990).
A public officer claiming certain compensation or other benefits must show a clear legal basis for his right to these emoluments; hopes and expectations, even reasonable ones, are not enough to create that legal entitlement, nor are any moral obligations which may be incurred, without clear warrant of law. Sohl v. FSM, 4 FSM R. 186, 193 (Pon. 1990).
The compensation of public officials in the FSM is not determined by a contract for specific services, express or implied, but by the judgment of the people, through their elected representatives and executive officials who properly exercise delegated power pursuant to statutory or other authorization; specifically, the FSM Constitution and statutes establish how a person may attain public office, and the National Public Service System Act and regulations thereunder set the compensation to be paid to holders of the respective offices. Sohl v. FSM, 4 FSM R. 186, 194 (Pon. 1990).
Where a public official claims additional compensation, it is inappropriate to ask whether he received compensation equal to the value of his services to the public, but instead the court must inquire whether he received the amount that was due to him by law or whether he can demonstrate a clear legal entitlement to the office which would have provided the compensation he now seeks. Sohl v. FSM, 4 FSM R. 186, 194 (Pon. 1990).
The Personnel Officer shall periodically conduct necessary and appropriate studies of rates of compensation and pay-related practices in all geographic areas from which employees for the public service are normally recruited and shall adopt such amendments to the existing compensation plan as he deems appropriate; provided that when the amendment includes changes in the salary schedule, the rates or nature of differentials or allowances, or other subjects covered in this subchapter or in other laws, the Personnel Officer shall submit the recommendations to the President for review, approval, and further transmittal to the Congress for its consideration, and that such amendment shall become effective only after it has been enacted into law. In developing amendments, the Personnel Officer shall give consideration to:
(1) the minimum standard of living which is compatible with decency and health;
(2) the general economic conditions of the Federated States of Micronesia;
(3) compensation practices and conditions of appropriate labor markets;
(4) conditions of employment in the National Public Service System;
(5) the financial resources estimated to be available to the central Government of the Federated States of Micronesia;
(6) such other matters as the Personnel Officer may deem appropriate.
Source: TT Code 1966 § 98; COM PL 3C-49 § 3(b); TT Code 1970, 61 TTC 102; COM PL 5-51 § 11(7); TT Code 1980, 61 TTC 10(10)(d); PL 1-47 § 17(3); PL 1-71 § 1.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Congress are found in title 3 of this code.
The official website of the Congress of the Federated States of Micronesia contains the public laws enacted by the Congress, sessions, committee hearings, rules, and other Congressional information at http://www.fsmcongress.fm/.
To recognize circumstances of employment which make it appropriate that consideration be given to labor market conditions outside the Federated States of Micronesia, and to recognize and reward the attainment of certain advanced professional status, the following premiums are provided to public service employees:
(1) Market place premium. An employee who is recruited in a location outside the Federated States of Micronesia, who is a noncitizen of the Federated States of Micronesia, and at the time of original hire, a nonresident thereof, may be paid a premium based on labor market conditions in the place of recruitment and on the level of the base salary. A market-place premium may be paid if prevailing rates of pay for equivalent positions are substantially higher in the country of recruitment than in the Federated States of Micronesia. Upon request from the allottee of the funds from which the employee’s compensation is to be paid, the Secretary of the Department of Finance and Administration shall report to the allottee on the difference, insofar as it can best be estimated, between the prevailing rates in the Federated States of Micronesia and in the country of recruitment. The allottee may then determine what portion, if any, of the difference will be paid as a market-place premium. The amount of the premium determined by the allottee shall not be greater than 90 percent of the value of the employee’s base salary.
(2) Foreign service premium. An employee who is a citizen of the Federated States of Micronesia and who is assigned to a permanent duty station outside the Federated States of Micronesia may be paid a premium based on the cost of living in the place of assignment.
(3) Professional premium. An employee who has achieved advanced professional status in one of the following manners and who is employed in a position which requires or, directly utilizes such professional status may receive, in addition to the base salary of his position, a professional premium. The amount of professional premium to be paid, if any, shall be determined by the allottee of the funds from which the employee’s salary is to be paid based upon the employee’s education, experience and expertise. The amount of the premium determined by the allottee shall not be greater than 90 percent of the value of the employee’s base salary. To be eligible for such a professional premium, the employee must meet one or more of the following requirements:
(a) attainment of an earned degree in law from a law school accredited by the competent authority in the jurisdiction in which it operates, and admission either to the FSM Supreme Court Bar or to practice law in another jurisdiction;
(b) admission to the FSM Supreme Court Bar and eight years of experience in the legal field;
(c) full membership of one or more of the professional accountancy associations listed in the Public Service Regulations, as amended from time to time, or certification by the Public Auditor that the employee’s qualifications and experience are equivalent to those which would be required to obtain full membership of such an association;
(d) attainment of an earned degree in engineering upon completion of a four-year course of study from a college, university or educational institution which is accredited by the competent authority in the jurisdiction in which the college, university or educational institution is located; and
(e) attainment of an earned doctorate in any field.
(4) The Public Auditor will conduct an annual audit of all professional and market place premiums being paid to public service employees. The audit findings shall be transmitted to the President and Congress.
Source: PL 1-47 § 17(4); PL 1-71 § 1; PL 11-81 § 3; PL 13-64 § 2.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Supreme Court and Judiciary are found in title 4 of this code. The statutory provisions on the Public Auditor are found in chapter 5 of title 55 (Government Finance and Contracts).
To compensate for unusual circumstances of employment which create hardships for public service employees, the following differentials are provided for them; provided that in no case may an employee receive differentials under both subsections (1) and (2) of this section:
(1) Night work differential. An employee whose tour of duty includes regularly scheduled hours falling between 7:00 p.m. and 6:00 a.m. shall be paid a differential of 15 percent of the adjusted base salary for all hours falling within that period.
(2) Hazardous work differential. An employee whose position entails unusual and extreme hazards to his health or safety shall be paid a differential of 25 percent of the adjusted base salary for all hours in which hazardous work is performed.
(3) Overtime differential. If an employee is eligible to receive overtime compensation under section 509 of this title, he shall be paid overtime compensation at the rate of time and one-half of his adjusted base salary for all time when he is directed to work and does work in excess of eight hours in one day; or when he is directed to work and does work on the sixth or seventh day of the work week; provided that he has first worked forty hours at straight time in the same work week; and provided further, that overtime work performed on a holiday shall be subject to subsection (4) of this section.
(4) Holiday differential. An employee who is required to work on a legal holiday shall be compensated at double his adjusted base salary for all such hours worked.
(5) Typhoon emergency differential. Employees who are required to work in a location and a period in which a typhoon or other natural catastrophe has been declared by competent authority, and in which other Government employees are released from work because of such conditions, shall be compensated for the hours worked while such emergency remains in force at the rate of two and one-half times the adjusted base salary. The differential provided in this subsection shall not limit the employee’s right to any other differential or allowance to which he may otherwise be entitled by law or regulations.
(6) Sea duty differential. An employee of the Maritime Wing of the National Police shall be paid his adjusted base salary plus a differential of ten percent of his adjusted base salary for all hours actually worked, up to but not in excess of eight hours per day, in any day or fraction thereof, including the sixth and seventh day of the work week, that he is on duty at sea. No compensation, regular or overtime, no differential of any sort, and no compensatory time shall be due for any additional hours worked in any such day, regardless of how many hours the employee was actually required to work in that day. Hours actually worked while at sea, up to but not in excess of eight hours per day, shall count as straight time hours for the purpose of determining compensatory time, if any, in a work week spent partially at sea and partially not at sea. The holiday differential shall apply in lieu of the sea duty differential while at sea on a holiday. The hazardous work differential shall apply in addition to the sea duty differential while at sea, provided that being at sea does not in and of itself constitute hazardous work. The typhoon emergency differential shall not apply while at sea.
Source: TT Code 1966 § 98(c); COM PL 3C-49 § 3(e); TT Code 1970, 61 TTC 105, 106, 107; COM PL 4C-49 § 10(10)(e); COM PL 5_51 § 11(e), 12; COM PL 5-67 §§ 3, 4; COM PL 6-65 § 11; COM PL 6-98 § 4; PL IC-13 § 18; TT Code 1980, 61 TTC 10(10)(e); PL 1-47 § 17(5); PL 1-71 § 1; PL 9-155 § 12; PL 11-96 § 1, modified.
Editor’s note: Public Law 9-155 § 12 amended this section by removing the subsection dealing with overtime differential.
To compensate employees for unusual expenses resulting from changes of work location, the following allowance is provided to public service employees:
(1) When an employee is recruited or transferred beyond normal commuting distance from his place of permanent resident for work elsewhere, he shall be entitled to all justifiable expenses connected with travel of himself and his immediate family to the new work location and transportation of a reasonable quantity of household effects.
(2) He shall be entitled to an allowance equal to per diem at the established rate for the new duty station for a period not exceeding 15 calendar days from the date of entry into the new position.
Source: TT Code 1966 § 98(c)(1); COM PL 3C-49 § 3(e)(1); TT Code 1970, 61 TTC 105(1); COM PL 4C-49 § 10(10)(e)(v); TT Code 1980, 61 TTC 10(10)(e)(v); PL 1-47 § 17(6); PL 1-71 § 1.
When an employee’s performance, as determined through an objective evaluation, has met accepted standards of productivity during a specified period, his base salary may be increased by one step in the appropriate level of the base salary schedule. For an increase to step 2, 3, or 4, the required period shall be 52 calendar weeks; for an increase to 5, 6, or 7, the required period shall be 104 calendar weeks. No employee shall have a base salary above the maximum step prescribed for his pay level unless he was receiving such compensation on the effective date of this section.
Source: TT Code 1966 § 98(b)(1); COM PL 3C-49 § 3(d); TT Code 1970, 61 TTC 104; COM PL 4C-49 § 10(10)(e)(vii); COM PL 6-65 § 11(6); TT Code 1980, 61 TTC 10(10)(e)(vii); PL 1-47 § 17(7); PL 1-71 § 1; PL 4-114 § 10.
Errata: Typographical error at beginning of third sentence corrected by PL 4-114 to read “No employee shall . . . .”