PM announces salary adjustment of up to 15 per cent for civil servants

"The salary adjustment will be implemented in phases, starting from Dec 1, 2024, for Phase 1, and from Jan 1, 2026, for Phase 2," he said when addressing the civil servants at the 19th edition of Majlis Amanat Perdana Perkhidmatan Awam (MPPA XIX) 2024 programme here today.

Anwar said the salary adjustment for the Implementing, Management and Professional groups will be eight per cent in Phase 1 and seven per cent in Phase 2, while for the Top Management is four per cent in Phase 1 and three per cent in Phase 2.

"Pension adjustments will also be implemented based on the final salary adjustment of retirees in December 2024," he said.

Therefore, Anwar who is also Finance Minister, said under the revised Public Service Remuneration System (SSPA), the range of salary increase that civil servants will receive is between 16.8 to 42.7 per cent, taking into account double benefits.

He said a Wildlife Assistant Grade G11, with a monthly income of RM1,795 in November 2024, for example, will receive a new monthly income of RM2,115 from December 2024, based on Phase 1 of the salary adjustment.

In Phase 2 starting January 2026, the same Wildlife Assistant will get another salary adjustment of seven per cent, bringing the total salary to RM2,327 per month, he said.

"The calculation method or formula will be explained in more detail by the Public Service Department in their engagement sessions later," he said.

Anwar also said that in a bid to boost work motivation for the implementers, a form of performance-based incentive will be given to officers who have reached a service period of at least six years after Time-Based Excellence (TBK) 2 and this incentive is equivalent to one annual salary increase (KGT) of the officer's current grade.

Anwar said as an encouragement incentive, recognition of expertise will be given to officers qualified as Subject Matter Expert (SME).

He said the incentive will be implemented through acting or appointment letters given without a vacancy as Special for Incumbent (KUP) from Grade 48 to Special Grade C.

"For this, focus will be given to seven new niche areas such as artificial intelligence (AI), cyber security, digital transformation, food technology, energy transition, national border demarcation and disaster management," he said.

In appreciation of the sacrifices and service of members of the Malaysian Armed Forces (MAF), Anwar said the Cost of Living Aid (BSH) for eligible non-pensionable MAF veterans will be increased from RM300 to RM500 per month to help ease their financial burden.

The Prime Minister said the salary adjustment made through the SSPA had also taken into account the 21.3 per cent increase in the Consumer Price Index (CPI) over the past 10 years, especially as the price of food and drinks which had also increased at a rate of 24.8 per cent. "We think that the salaries of civil servants for the past 12 years have only increased by 5.8 per cent compared to inflation of 24 per cent, so that is why it is very stressful for civil servants, especially those in Grade 26 and below whose basic salaries are quite low.

"The last salary adjustment for civil servants was done in 2012. So, this salary adjustment (under the new SSPA) is generally much better than what has been done before. The government is indeed committed to ensuring the welfare of civil servants," said Anwar.

At the same time, Anwar also warned all quarters not to take advantage in any form, such as raising the price of goods, following the announcement of the salary adjustment for civil servants.

"I also hope the private sector, especially the companies that record high profits, would emulate the government's move to raise the salaries of civil servants by taking the necessary steps as a symbol of appreciating the service, productivity and sacrifices of their employees," he added.

-- BERNAMA