PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today announced that civil servants will enjoy a salary hike of more than 13 per cent starting December this year, the highest increase in the nation’s history.
He said the increase would involve an allocation of over RM10 billion.
“The increase will be more than 13 per cent...the best increase in history by the MADANI Government,” he said in his speech when officiating the National Labour Day 2024 celebration here.
Anwar, who is also Finance Minister, said that under the Public Service Remuneration System (SSPA) being revised, the government will ensure that the minimum income for civil servants exceeds RM2,000 per month.
“Currently, the overall minimum income, which includes salary and fixed allowances, is RM1,795 per month,” he said.
Anwar further said the highest pay hike was 13 per cent about 12 years ago, and the MADANI Government will ensure that this time, it will be higher than that.
“Therefore, we will implement an increase of more than 13 per cent starting December this year because I have promised,” he said.
When tabling Budget 2024 on Oct 13 last year, the prime minister announced that the SSPA would be fully implemented from 2025.
“When we start implementing it next year, it (the allocation) will exceed RM10 billion because the amount is quite big and the increase is quite substantial...making it the most significant increase in history.
“We will also assess it from a financial perspective and look for ways to fund it while ensuring that the national debt does not become excessive. This will require exceptional expertise, but no matter how hard it is, we have a duty to fulfil our promise to the people, including workers,” he said.
The prime minister also emphasised that the implementation of SSPA would take into account the overall aspects.
“...and this does not apply to everyone. If their work record is not commendable, lazy, frequently late, or lacks focus, they are not eligible for the rewards promised by the government,” he said.
In his address, the prime minister said that every job is equally important in generating the country’s economy.
Anwar also refuted claims that the government only pays attention to civil servants compared to workers in other sectors.
At the same time, he expressed hope that private companies would emulate the government’s initiative in raising civil servants’ salaries.
“...although this announcement does not directly affect the private sector, I want them to pay attention. There are private companies with profits multiplied several times over.
“So where do these profits come from? Productivity. And where does the productivity come from? It comes from the workers, so distribute a small portion. If the company makes a hundred million, give a few hundred ringgit to the workers,” he said.
Meanwhile, Anwar said the Sabah and Sarawak governments have agreed to amend their respective labour ordinances to align with the Employment Act 1955, which is applicable in Peninsular Malaysia.
He said the Sabah Labour Ordinance Bill (Amendment) 2024 and the Sarawak Labour Ordinance Bill would be tabled in the next Parliament sitting.
Anwar also informed that Malaysia’s position in the Government Efficiency Sub-Index for the IMD World Competitiveness Yearbook had improved to the 29th position in 2023, compared to the 38th position in 2022.
“This performance indicates that Malaysia is on the right track to achieve a top 20 position by 2025, as outlined in the Mid-Term Review of the 12th Malaysia Plan,” he said.
