Highest pay hike to date for Malaysia’s civil servants

PM Anwar, who is also the Finance Minister, said civil servants will take home a minimum overall monthly income of RM2,000 (US$419) under the revamped Public Service Remuneration System.

Martin Carvalho, Benjamin Lee, and Elisha Mary Easter

Martin Carvalho, Benjamin Lee, and Elisha Mary Easter

The Star

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Although his announcement was meant for those working in the public service, PM Anwar said the private sector should also take heed of his message of safeguarding the welfare of workers. PHOTO: UNSPLASH

May 2, 2024

PUTRAJAYA – Some 1.6 million civil servants will get a pay rise of above 13% when the revamped Public Service Remuneration System (SSPA) is implemented next year, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the increase in salary for civil servants will be the highest to date, costing about RM10bil annually.

“Although our debt may be big with the existing deficit, we must seriously consider the welfare of our workers,” he said when launching the national-level Labour Day celebrations here yesterday.

He said the increase in salary would be higher than the previous 13% hike in the last salary review 12 years ago.

He also said the SSPA will be the most comprehensive and largest remuneration scheme in terms of financial implications for the government.

Anwar, who is also the Finance Minister, said civil servants will take home a minimum overall monthly income of RM2,000 under the revamped SSPA.

“Currently, the minimum overall income of civil servants is RM1,765.

“A new criterion and measurement will be introduced where the minimum overall income, including allowance, will be RM2,000.

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“We will implement the wage increase from December this year as I have promised,” Anwar said to cheers from civil servants attending the celebrations held at the Putrajaya International Convention Centre.

However, he said underperforming civil servants will not be rewarded or promoted under the SSPA.

“They will be monitored to see if they are lazy or coming in late for work often.

“If their record is unsatisfactory, they will not be rewarded,” he said.

Although his announcement was meant for those working in the public service, Anwar said the private sector should also take heed of his message of safeguarding the welfare of workers.

“The private sector has reaped healthy profits, whether they are banks or companies that have benefited from government incentives.

“They should translate what I have announced to give due recognition to employees,” he said.

He noted that the large profits made by some companies were due to the productivity of their employees.

“Give some of it to the workers. If the company makes hundreds of millions in profit, give a hundred or two to the workers so that they too benefit,” he added.

ALSO READ: Civil servants to get over 13% pay hike, says Anwar

Anwar also announced that employees in Sabah and Sarawak can look forward to longer maternity and paternity leave soon.

He said this was because Sabah and Sarawak have agreed to streamline their respective labour ordinances with provisions under the Employment Act, 1955.

“Maternity leave for working mothers in Sabah and Sarawak will be increased from 60 to 98 days to follow the Employment Act.

“Working fathers in Sabah and Sarawak will also get seven days’ paternity leave,” he said.

In addition, Anwar said the changes to the labour ordinances will include better protection against discrimination and sexual harassment at the workplace.

He said the Sabah Labour Ordinance 1949 and the Sarawak Labour Ordinance 1952 will be tabled in the next Parliament meeting.

Parliament is scheduled to meet from June 24 to July 18.

The increase in maternity leave for working mothers and paternity leave for working fathers came into force in Jan 1 last year following amendments to the Employment Act.

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