Selangor Journal
Prime Minister Datuk Seri Anwar Ibrahim speaks during the national-level Labour Day celebration at the Putrajaya International Convention Centre, Putrajaya on May 1, 2024. — Picture via X/ANWAR IBRAHIM

Civil servants’ wage hike: Up to 30 pct increment for lower grades

PUTRAJAYA, May 1 — The salary increase of more than 13 per cent for civil servants, expected to be implemented in December this year, is an effort to balance the income gap between those in lower and higher grades, according to Prime Minister Datuk Seri Anwar Ibrahim.

He said unlike previous administrative approaches, the announcement made today was meant to raise the income of those in the low-income group and reduce the increment for those already in the high-income group.

“For those in the low-income group, their salary increase may reach up to 25 to 30 per cent.

“I’m prioritising those in the low-income group and reducing the salary increase for those in the high-income group,” he said in the ‘Soal Jawab Perdana Menteri’ programme with four local television channels tonight.

The almost hour-long interview was hosted by presenters Sayed Munawar Sayed Mustar of RTM, Pasha Abdul Rahim (Bernama TV), Muhammad Zulfitri Yusof (Awani) and Azaria Tagaya (TV3).

The prime minister said the wage increase cent will involve the basic salary rather than allowances, and details will be discussed in a Cabinet meeting before a decision is made.

“Although there was a 35 per cent increase introduced before, it was for Grade 1 to Grade 16. But overall, this is still among the highest, with a very high cost exceeding RM10 billion,” said Anwar, who is also the finance minister.

Describing the announcement made in conjunction with the Labour Day as an appreciation of the contributions and services of civil servants to the country, the prime minister wants this group to continue increasing productivity in line with the soon-to-be-enjoyed salary increase.

“It is hoped that this will encourage civil servants to work harder and stop being sluggish, lazy, and wasteful. The Malaysian Anti-Corruption Commission (MACC), police and Inland Revenue Board (IRB) must be stricter in their enforcement against irregularities or wastage in government departments.

“All ministries need to monitor so that starting from this month, we see improvements in all aspects. The people should not be kept waiting for hours (to be served). We need to be efficient, there must be changes. I hope for something better,” he said.

Earlier, when launching the Labour Day celebration in Putrajaya, Anwar said the salary increase is among the highest and best in history.

Anwar said 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. 

Monitoring inflation

Anwar said the government will continue to monitor the rate and impact of inflation in the country following the announcement of the 13 per cent increase in civil servants’ salaries this December.

“That is why the increase will be phased in starting December and followed through to the following year (2025).

“So, if it goes up (inflation), it will be under control because, as we know, inflation in our country is the lowest in Asia,” he said.

Anwar also reassured that the government will always strive to make sure that the inflation rate will not burden the people.

He said this when asked about the rising inflation concern in the country following the announcement of a salary increase for civil servants.

According to Bank Negara Malaysia, overall inflation is expected to remain moderate, between 2.0 per cent and 3.5 per cent this year, largely attributed to cost pressures that are under control following improved global supply conditions.

Meanwhile, Anwar denied claims that the cost of living is now the highest in history.

“That is a lie. I used to oversee price controls for goods many decades ago as the finance minister. Indeed, we assume that every year before Hari Raya, the price of chicken will go up, but this time it did not.

“We also monitor the prices of vegetables and fish. Some went up, I am not denying it, but we are monitoring,” he said, adding that the cost of living in Malaysia is still well controlled compared with Singapore, Thailand, Indonesia and the Philippines.

— Bernama

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