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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2008</h1>
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<div id="breadcrumbs" itemscope itemtype="http://schema.org/BreadcrumbList">You are here: <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="/" itemprop="item"><span itemprop="name">Social Security Administration</span></a><meta itemprop="position" content="1" /></span> > <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="/policy/index.html" itemprop="item"><span itemprop="name">Research, Statistics & Policy Analysis</span></a><meta itemprop="position" content="2" /></span> > <span itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"><a href="index.html" itemprop="item"><span itemprop="name">Social Security Programs Throughout the World: Asia and the Pacific, 2008</span></a><meta itemprop="position" content="3" /></span></div>
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<h1>Palau</h1>
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<div class="exchangeRate">Exchange rate: Currency is the <abbr>US</abbr> dollar (<abbr title="United States dollar">US$</abbr>).</div>
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<h2>Old Age, Disability, and Survivors</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1967.</p>
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<p><span class="h4">Current law:</span> 1987, implemented in 1991.</p>
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<p><span class="h4">Type of program:</span> Social insurance system.</p>
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<h3>Coverage</h3>
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<p>Gainfully employed persons, including some categories of self-employed persons.</p>
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<p>Voluntary coverage for self-employed persons (including farmers, fishermen, and taxi drivers) with no employees and gross earnings less than US$10,000 a year but more than US$300 per quarter.</p>
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<p>Exclusions: Casual labor and self-employed persons with no employees and annual gross income of less than US$300 per quarter.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> 6% of earnings.</p>
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<p>The maximum earnings for contribution calculation purposes are US$3,000 per quarter.</p>
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<p><span class="h4">Self-employed person:</span> 12% of twice the salary of their highest-paid employee (12% of 1/4 of gross annual earnings, if no employees and declared annual earnings greater than US$10,000).</p>
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<p>The maximum earnings for contribution calculation purposes are US$3,000 per quarter.</p>
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<p><span class="h4">Employer:</span> 6% of payroll.</p>
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<p>The maximum earnings for contribution calculation purposes are US$3,000 per quarter.</p>
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<p><span class="h4">Government:</span> None; contributes as an employer.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Old-age pension:</span> Age 60 with at least 1 quarter of coverage for each year after June 1968 (or since age 21, if later) up to age 60.</p>
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<p>The old-age pension is paid to a pensioner who begins a new job after retirement.</p>
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<p><span class="h4">Disability pension:</span> Incapacity for substantial gainful activity due to a physical or mental disability that is likely to last at least a year or result in death. One quarter of coverage for each year after June 1968 (or since age 21, if later) with at least 12 quarters of coverage or at least 8 quarters of coverage during the last 13 quarters.</p>
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<p><span class="h4">Survivor pension:</span> The deceased had 1 quarter of coverage for each year after June 1968 (or since age 21, if later) or had at least 8 quarters of coverage in the 13 quarters preceding death. Survivors are eligible for only one survivor pension.</p>
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<p>Eligible survivors are a widow(er) who was married to the deceased at the time of his/her death and unmarried children younger than age 18 who were dependent on or living with the deceased. Widow(er)s under age 50 and employed are subject to an earnings test.</p>
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<p>The survivor pension is payable abroad under reciprocal agreement.</p>
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<p><span class="h4">Lump-sum survivor benefit:</span> Paid for the death of a worker with less than the minimum number of required quarters of coverage for a pension.</p>
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<p>Eligible survivors are (in order of priority) the spouse, children, parents, legal representative, or persons who lived with the deceased.</p>
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<h3>Old-Age Benefits</h3>
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<p><span class="h4">Old-age pension:</span> The pension is equal to 16.5% of the first US$11,000 of the insured's cumulative covered earnings, plus 2.7% of earnings between US$11,000 and US$44,000, and 1.35% of earnings over US$44,000.</p>
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<p>The minimum monthly old-age pension is US$47.50.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability pension:</span> The pension is equal to 16.5% of the first US$11,000 of the insured's cumulative covered earnings, plus 2.7% of earnings between US$11,000 and US$44,000, and 1.35% of earnings over US$44,000.</p>
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<p>The minimum monthly disability pension is US$47.50.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> Up to 60% of the deceased's pension is paid to a widow(er) at any age.</p>
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<p><span class="h4">Orphan's pension:</span> Each orphan younger than age 18 (age 22 if a student; no limit if disabled before age 22) receives 15% of the deceased's pension.</p>
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<p>Earnings test: The survivor pension is reduced by US$1 for each US$3 of earnings above US$500 a quarter if aged 50 or younger and employed.</p>
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<p>The minimum monthly survivor pension is US$47.50.</p>
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<p>The maximum survivor pension is equal to 100% of the deceased's pension.</p>
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<p><span class="h4">Lump-sum survivor benefit:</span> A lump sum is paid and split equally among eligible survivors.</p>
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<h3>Administrative Organization</h3>
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<p>Palau Social Security System (http://www.ropssa.org) administers the program at the local level.</p>
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