COLA, not this time for FSM National Government employees

FSMIS (October 6, 2014): The Federated States of Micronesia Congress passed a bill on July 12, 2014, to allow for a Cost of Living Allowance (COLA) for employees covered under the FSM National Public Service System Act whose annual base salary is $15,000 or less. 

The COLA would add a non-taxable $40.00 per 80 hours for eligible employees "to compensate for loss of purchasing power due to inflation", the bill indicates. 

President Manny Mori vetoed the proposed legislation on July 25th on the basis that there was a lack of clarity as to the rational for limiting the allowance to only the employees with $15, 000 or less annual earning when the fact is that inflation affects all employees. The bill in its current form appears to discriminate against other employees under the Public Service System Act, for instance those earning $15, 500 or above, whose purchasing power are also affected due to inflation. 

Congress entertained the interest to override the veto during its Fifth Regular Session, which concluded on October 3, 2014. However, the session ended without Congress voting on the override of the COLA Act veto.