Datuk Seri Najib Tun Razak today announced a RM500 Aidilfitri special financial assistance for civil servants on Grades 1 to 54.

The prime minister also announced a RM250 special financial assistance for the 660,000 government pensioners.

He said the payment of the special aid would be made on July 31.

"The government has agreed to provide a special financial assistance of RM500 for civil servants to prepare for the Aidilfitri. The payment involves a financial allocation of RM670 million.

"In appreciation of the services of retired civil servants, the government has agreed to give a special financial assistance of RM250 to government pensioners. This will involve a financial implication of RM165 million," he said in a statement.

Najib said that besides the special financial assistance, civil servants enjoyed two annual salary increments this year - the usual increment and a second increment.

He said the second increment was equivalent to one salary increment in accordance with the salary grade that had been brought forward and would be paid along with the monthly salary tomorrow, as announced by him at the 13th Civil Service Premier Gathering (MAPPA).

Najib said the measure followed a study to improve the schemes of service and adjust the salary structure that would be completed in December under the Transformative Remuneration System.

The payment of the annual salary increment to the 1.4 million civil servants involved a financial allocation of RM1.3 billion for a six-month period or RM3.9 billion for a year.

"The benefit will be derived for the whole duration of their service. They will also receive a higher pension due to the two annual increments this year," he said.

Najib said the government had allocated RM4.7 billion for the payment of the annual increment and the special financial assistance for civil servants and pensioners to help ease their financial burden in preparing for the Aidilfitri.