Salary hike for civil servants will drive reforms in private sector: HR Ministry

Deputy minister says new remuneration system complements progressive wage policy, minimum wage policy, productivity-linked system

Yesterday, Datuk Seri Anwar Ibrahim announced that civil servants’ salaries will be increased by 7% to 15% starting December 1. – Bernama pic, August 17, 2024

KUALA LUMPUR – The recent salary adjustment for civil servants is also meant to drive progressive wage increments in the private sector, the Human Resources Ministry said. 

Deputy Minister Datuk Seri Abdul Rahman Mohamad said the salary hike in the public sector complements the National Progressive Wage Policy, alongside the Minimum Wage Policy and the Productivity Linked-Wage System.

Together, these policies align with the ministry’s goal to strengthen and reform the private labour market, Bernama reported him saying at Kg Jeram Tekoh in Gua Musang today.  

“The salary adjustment for civil servants will enhance national productivity and help achieve a more balanced income distribution.  

“The private sector is expected to follow suit, as over 1,000 employers have responded positively to similar initiatives.”  

Abdul Rahman was commenting on the government’s move to raise civil servants’ salaries by 7% to 15% starting December 1

The top management will get a 7% increase while the 15% increment is for those in the implementing, management and professional groups.  

The last time civil servants’ salaries were reviewed was 12 years ago.  

The latest review, called the  Public Service Remuneration System (SSPA), was announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday who said it would be implemented in phases, starting December 1 for Phase 1, and January 1 in 2026 for Phase 2.  

As for the Progressive Wage Policy, the Economy Ministry recently released the Basic Starting Salary and Annual Increment Guide for employers.

It lists starting salaries for jobs in various sectors which the ministry wants private sector employers to voluntarily follow. 

Compliance with the wage scales set by the government will entitle employers to incentives. – August 17, 2024