The government has decided to review the proposed implementation of early redemption of Cash Award in Lieu of Leave (GCR) for up to 75 days as replacement pay for civil servants who have served for at least 15 years as announced in the 2020 Budget.

Minister in the Prime Minister’s Department (Parliament and Law) Datuk Takiyuddin Hassan said the review would be carried out as the early redemption of the GCR while still in service would not benefit civil servants.

“This is because the GCR redemption calculation will be based on the current salary of civil servants.

“The amount received via early redemption while in service is much lower than during retirement because the final salary received at that time will be higher,” he said during the Ministers’ Question Time in the Dewan Rakyat, today.

He said this in his reply to a question from Shaharizukirnain Abd Kadir (PN-Setiu) regarding the status of the implementation of the GCR redemption.

“When they fully retire, they will get another RM27,553.95. The total amount received is only RM42,909, and they stand to lose about RM12,198.90.

The total maximum amount of GCR that can be accumulated currently is 150 days.

In addition, he said the early redemption of GCR is taxable, which will further reduce the amount of money received by civil servants.

Answering a supplementary question from Akmal Nasrullah Mohd Nasir (PH-Johor Bahru) on whether the move would involve direct cancellation of the policy or improvement, Takiyuddin said it had yet to be decided.

He said it could involve policy to be retained with improvements or the introduction of new policy.

-- BERNAMA