ASG to raise min wage to $7.25

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The new compensation plan for the American Samoa Government which is scheduled to go into effect July 1st would raise the hourly minimum wage from $5.21 to $7.25.

According to a report on the plan obtained by KHJ News, the starting salary for the lowest paid employee would be $15,080. There will be an added incentive for years of service in ASG.

There would also be a ripple effect for employees earning higher salaries. This would push up the salaries of those now earning between $15,000 and $18,000 per year.

The new compensation plan would also set higher starting salaries for those with AA, Bachelors and Masters degrees. But the increases would be lower than what teachers are earning under the Dept of Education’s new salary reclassification.

AA degree holders will start off at $19,000, those with BAs will receive $28,000 and the starting salary for Masters degree holders start at $35,000. Incentives for years of service will also be added.

KHJ News questions to the Governor’s Office on how much the compensation plan will cost and how it will be funded and sustained given that the main private sector employer, StarKist Samoa is showing signs of decline, have not been answered.