Civil servants across all grades in Malaysia will have their salaries increased under the new pay structure that will be phased in starting this December. Prime Minister Datuk Seri Anwar Ibrahim announced today in Putrajaya. The first phase of the increment will be 8 per cent for those in the lower and middle grades, and 4 per cent for the upper management. The second phase of the scheme will take effect January 2026 and will see the two groups receive another 7 per cent and 3 per cent increase, respectively.
The new salary rates are part of Datuk Seri Anwar’s reform of the civil service remuneration that has been renamed the Public Service Remuneration System (SSPA). The Prime Minister stressed that the new structure will be performance based. The cost of the increase is estimated to be RM10 billion. Pension adjustments will also be implemented based on the final salary adjustment of retirees in December 2024. Datuk Seri Anwar, who is also the Finance Minister said under the SSPA, the range of salary increase that civil servants will receive is between 16.8% and 42.7%, taking into account double benefits.
The last salary adjustment for civil servants was done in 2012.
