Labor Day is a significant public holiday in Palau, celebrated annually on the first Monday of September. This holiday is a tribute to the contributions and achievements of all working men and women who form the backbone of the country's economy and society. It enables them to take a well-deserved break from their laborious tasks to enjoy a day filled with rest, relaxation, and recreation.

The celebrations on Labor Day in Palau are somewhat akin to those in other countries that observe this holiday. Residents take advantage of the day off work to enjoy public gatherings, family picnics, community events, and sports or outdoor activities. Parades and public speeches are also common, paying homage to the working class and the laws that protect their rights.

Though Labor Day in Palau is a day off for many, it also serves as a time to reflect on labor movements and their immense influence on the rights and privileges that workers enjoy today. It brings a message of solidarity, respect, fair treatment, equity, and appreciation of the efforts poured in by the labor force, contributing their part to the growth and prosperity of the nation.