Ministers welcome civil service pay hike, expect domino effect on economy

PUTRAJAYA - Cabinet members have expressed confidence that the salary adjustment for civil servants announced by Prime Minister Datuk Seri Anwar Ibrahim today will have a domino effect on the work performance of civil servants and the country’s economy.

Minister in the Prime Minister's Department (Federal Territories) Dr Zaliha Mustafa said the good news would motivate all civil servants to improve their work performance as expressed by Anwar during his speech at the 19th Civil Service Premier Assembly (MAPPA) themed 'Madani Public Service’ today.

"Certainly, the government hopes to see better performance from civil servants. We know the government's performance relies on the public service.

"If the performance of the public service improves, it will undoubtedly project a good image for the country and indirectly attract more investments and boost the national economy,” she told Bernama after MAPPA here today.

Anwar, who is also the Finance Minister, announced a salary adjustment of 15 per cent for the Implementing, Management and Professional groups in the civil service, and seven per cent for the Top Management group.

The salary adjustment will be carried out in two phases, with Phase 1 on Dec 1, 2024, and Phase 2 on Jan 1, 2026.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the announcement reflected the government's concern, sensitivity, and appreciation towards civil servants, particularly frontline workers.

"This is very welcoming for us (Health Ministry staff) because we want to retain our specialists, and (for that) they must be well compensated to make them stay with us.

"Now is the time for all Health Ministry (MOH) staff, from the lowest to the highest position, to be more enthusiastic in improving healthcare service delivery,” he said.

Housing and Local Government Minister Nga Kor Ming said Anwar's call for a paradigm shift in public service delivery should serve as motivation to work harder for the people.

"Work productivity must be enhanced, and it must be people-friendly in all aspects. The important message I wish to emphasise is that the Prime Minister is still working without a salary, and the entire Cabinet continues to take a 20 per cent pay cut until now,” he said, reiterating the unity government's commitment and concern for the people’s welfare.

Meanwhile, Works Minister Datuk Seri Alexander Nanta Linggi said that with the salary adjustment, civil servants now bear a greater responsibility in terms of increasing productivity and accountability.

"The Prime Minister reminded everyone earlier, that if you want a higher reward, you need to ensure productivity, efficiency, and integrity. The country needs to move forward, and people need to work hard, work on our economy so that people can live well,” he said.

Echoing Nanta, Human Resources Minister Steven Sim said the new Public Service Remuneration System (SSPA) was expected to create an economic spillover effect.

In this regard, he also urged the private sector to follow the government's lead in improving workers' salaries to appreciate the productivity and contributions of their respective employees.

"Companies are also encouraged to participate in the ongoing progressive wage pilot project, which aims to increase the income of workers, particularly in the Small and Medium Enterprises (SMEs) sector.

"Through this programme, the government will provide subsidies of up to RM300 per month for each worker employed by participating companies, subject to the conditions set,” he said in a statement.

Sim also informed that the Human Resources Ministry had received recommendations from the National Wages Consultative Council for a new minimum wage rate and was currently preparing a Cabinet paper for approval. - BERNAMA