Malaysian civil servants to see record pay hike of over 13% from ...

SINGAPORE: Civil servants in Malaysia will surely be looking forward to the year’s end after Prime Minister Anwar Ibrahim announced a salary hike of over 13 per cent from Dec 1 for them.

Mr Anwar said the salary increment for the civil servants will be the highest to date and will cost the government some RM10 billion (US$2.09 billion) annually.

There are some 1.2 million civil servants in the country, 90 per cent of whom are Bumiputeras, according to a report from Free Malaysia Today.

The last time the civil servants' salaries were revised was 12 years ago, which saw a 13 per cent hike then.

“Although our debt may be big with the existing deficit, we must seriously consider the welfare of our workers,” he was quoted as saying by The Star on Wednesday (May 1) when launching the national-level Labour Day celebrations.

Mr Anwar, who had earlier promised a “best ever” revision for civil servants, added that the overall income for them – which comprises their salary and fixed allowances – must exceed RM2,000 starting from this year.

“Currently, the minimum overall income of civil servants is RM1,765. A new criteria and measurement will be introduced; the minimum overall income including allowances will be RM2,000.

“The scheme was initially planned for implementation in January next year but will be implemented for their December salary,” he said.

According to Mr Anwar, the revamped Public Service Remuneration System will be the most comprehensive and largest remuneration scheme in terms of financial implications for the Malaysian government.

He, however, stressed that civil servants who are underperforming will not be rewarded nor promoted.

“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,” said Mr Anwar.

Separately, Human Resources Minister Steven Sim said the government values all groups of workers in the country, and that there were different programmes for different sectors.

He cited the Progressive Wage Policy pilot which aims to increase the median wage of private sector workers.

"For us, civil servants are frontliners. If we want our country's economy to progress, so we can create better job opportunities, then we need civil servants who are productive and efficient.

"So, with the understanding and appreciation given to civil servants, I believe it will provide motivation for civil servants to continue to carry out their duties to develop the country's economy together," he said, according to the New Straits Times.

The unity government’s spokesperson Fahmi Fadzil has said that further details of the salary increment for civil servants will be announced during the tabling of Budget 2025 later in October.