New Public Service Remuneration System to replace current system ...

Implementation details, including salary adjustments and service matters under the SSPA, will be rolled out following engagement sessions led by the Public Service Department. 

On 16 August 2024, Malaysia's Prime Minister Datuk Seri Anwar Ibrahim announced a new pay structure for civil servants across all grades which is set to begin in December of this year. 

In the first phase, lower- and middle-grade employees will receive an 8% salary increase, while upper management will see a 4% raise.

The next phase, starting in January 2026, will further boost salaries by 7% for lower- and middle-grade employees and 3% for upper management.

Effective 1 December 2024, the Malaysian Remuneration System (SSM) will be replaced by the Public Service Remuneration System (SSPA). 

Civil servants will be given 40 days, from 21 October to 30 November 2024, to opt for the new system before it takes effect.

According to the Public Service Department of Malaysia, implementation details, including salary adjustments and service matters under the SSPA, will be rolled out following engagement sessions led by the Department. 

These sessions, to soon be held across all ministries and departments, aim to provide human resources teams with the necessary insights and guidance for effective execution.

The implementation of SSPA will not affect the pension of civil servants in permanent roles, and the new salary adjustment will only be applicable to civil servants who choose the SSPA option.

From 13 September 2024, Service Circular Number 1 of 2024, titled Implementation of the public service remuneration system for federal public service officers, has been made accessible through the SSPA portal.

The purpose of the Circular is to implement the SSPA for permanently appointed public service officers. It encompasses service structures, including service schemes, salaries, allowances, facilities, and retirement benefits.

The Circular also identifies three key strategies to enhance public service delivery:

Increasing the disposable income of public officers;Reducing the government's fiscal liabilities related to retirement benefits, andBoosting public officers' productivity through value cultivation and technological adaptation.

The SSPA follows a total rewards philosophy, covering service schemes, salaries, allowances, facilities, and retirement benefits to enhance public service motivation, performance, and productivity. This system is reinforced by core values embedded within the public service.

The Circular also includes 14 tables to refer to: 

Table 1: Classification and service classification codesTable 2: Upgraded service schemeTable 3: Standardisation and renaming of service post gradesTable 4: Discontinued service schemeTable 5: Procedures for officer reassignment in discontinued service schemesTable 6: Service circular/letter on appointment or change of appointment requiring SPM/SVM and STPM/STAM qualificationsTable 7: Salary adjustment rates by service groupTable 8: Performance components and elements under MyPERFORMANCETable 9: Number of recipients of P.P.C. and APC AwardsTable 10: Categories of options under the SSPATable 11: Service schemes merged into new service schemesTable 12: Service schemes upgraded to SPM-qualified service schemesTable 13: Service schemes transitioned to new service schemesTable 14: Service schemes under SSM

More details are listed in the Circular here.

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