Malaysia plans salary hikes of up to 15% for civil servants

The adjustment will be implemented in two phases, starting from Dec. 1, 2024 for Phase 1 and from Jan. 1, 2026 for Phase 2, he said while addressing civil servants at the Putrajaya International Convention Center.

For civil servants in implementation, management and professional roles, they will receive an 8% raise in the first phase and the other 7% in the second phase. The ones holding top management roles will receive a pay increase of 4% in the first phase and 3% in the second phase.

Pension adjustments will also be implemented based on the final salary adjustment of retirees in December 2024, he added.

Anwar, who is also Finance Minister, said under the revised Public Service Remuneration System, the range of salary increase that civil servants will receive is between 16.8% to 42.7%, taking into account double benefits.

He noted that in a bid to boost work motivation, a form of performance-based incentive will be given to officers who have reached a service period of at least six years, and this incentive is equivalent to one annual salary increase of the officer’s current grade.

The Malaysian PM went on to say that the salaries of civil servants for the past 12 years have increased by only 5.8% compared to inflation of 24%, so it is very stressful for civil servants, especially those with low salaries.

As the last salary hike for civil servants was done in 2012, this time’s adjustment demonstrates the government’s commitment to ensuring the welfare for them, he said.

He also expressed his hope that the private sector, particularly companies recording high profits, will emulate the government’s move to raise the pay for their employees as a symbol of appreciating their staff’s service, productivity, and sacrifices.