Civil Servants To Get Pay Increase Of Up To 35 Pct
PUTRAJAYA, May 21 (Bernama) -- Prime Minister Datuk Seri Abdullah Ahmad Badawi today announced a pay increase of between 7.5 per cent and 35 per cent for the more than one million civil servants in the country, effective July 1. They will also get a 100 per cent increase in the cost of living allowance (Cola). In recognition of the heavy responsibility of police and military personnel and the challenges they face in the line of duty, Abdullah said they would get an additional 20 per cent on top of the increase.
Speaking at the Workers Day gathering for the public sector here, he said the basic salary of the Support Group II (Grades 1 to 16) would be increased by 35 per cent while those in the Support Group I (Grades 17 to 40) would get a 25 per cent increase. For the Management and Professional Group (Grades 41 to 54), the increase is 15 per cent while those in the Premier Grade (Jusa) will get a 7.5 per cent pay hike.
Abdullah said the salary increase for the 1,002,040 civil servants would cost the government RM3.4 billion this year or an additional annual expenditure of RM6.8 billion. The increase in the payment of Cola will involve an additional expenditure of RM600 million this year or RM1.2 billion annually.
Abdullah said the strong growth of the country's Gross Domestic Product over the past five years, averaging 5.6 per cent annually, was the first factor considered by the government in determining the quantum of the pay hike. This, he said, was spurred by the growth in private sector investment and the external trade volume which had surpassed the RM1 trillion mark.
"All these have allowed interest rates, inflation and unemployment to remain low. The Bursa Malaysia Composite Index also reflects the country's tremendous economic growth, reaching its highest level recently," he said. The prime minister said the second factor was the need to attract and retain qualified, highly-motivated and performance-driven human capital in the civil service. The government, he said, was also concerned about the rising cost of living due to the hike in global oil prices which had affected those in the lower income bracket. The fourth factor, Abdullah said, was the government's affordability which was aided by a marked increase in tax collection and a more prudent execution of expenditure.
"In fixing the quantum, the government is always mindful of its repercussions on the country's financial position. Any salary increase will also involve pension calculations and certain allowances. "The quantum has been decided carefully and prudently. The government was able to reduce the budget deficit from 5.3 per cent in to 3.5 per cent last year and we'll continue with this prudent fiscal management," he added.
Saying that the pay hike would lessen the burden of those in the lower income group, Abdullah said that at the same time, they should be mindful of the people's higher expectations of the civil service. "They'll expect a high-quality civil service that commensurates with the salary increase. Take this opportunity to increase productivity and the quality of service to the people," he added.
Highlighting a matter close to his heart, Abdullah said the government wanted the country's public sector to emerge as one that would achieve global distinction. "The government is counting on its employees to add value to their work. They should strive to reduce red tape, be friendly, transparent, responsive, creative -- putting the interests of customers above all else," he added. Abdullah said that civil servants should change their mindset to deliver services speedily, bearing in mind that they should play the role of facilitators and partners of the people and the private sector.
Source : Bernama
Speaking at the Workers Day gathering for the public sector here, he said the basic salary of the Support Group II (Grades 1 to 16) would be increased by 35 per cent while those in the Support Group I (Grades 17 to 40) would get a 25 per cent increase. For the Management and Professional Group (Grades 41 to 54), the increase is 15 per cent while those in the Premier Grade (Jusa) will get a 7.5 per cent pay hike.
Abdullah said the salary increase for the 1,002,040 civil servants would cost the government RM3.4 billion this year or an additional annual expenditure of RM6.8 billion. The increase in the payment of Cola will involve an additional expenditure of RM600 million this year or RM1.2 billion annually.
Abdullah said the strong growth of the country's Gross Domestic Product over the past five years, averaging 5.6 per cent annually, was the first factor considered by the government in determining the quantum of the pay hike. This, he said, was spurred by the growth in private sector investment and the external trade volume which had surpassed the RM1 trillion mark.
"All these have allowed interest rates, inflation and unemployment to remain low. The Bursa Malaysia Composite Index also reflects the country's tremendous economic growth, reaching its highest level recently," he said. The prime minister said the second factor was the need to attract and retain qualified, highly-motivated and performance-driven human capital in the civil service. The government, he said, was also concerned about the rising cost of living due to the hike in global oil prices which had affected those in the lower income bracket. The fourth factor, Abdullah said, was the government's affordability which was aided by a marked increase in tax collection and a more prudent execution of expenditure.
"In fixing the quantum, the government is always mindful of its repercussions on the country's financial position. Any salary increase will also involve pension calculations and certain allowances. "The quantum has been decided carefully and prudently. The government was able to reduce the budget deficit from 5.3 per cent in to 3.5 per cent last year and we'll continue with this prudent fiscal management," he added.
Saying that the pay hike would lessen the burden of those in the lower income group, Abdullah said that at the same time, they should be mindful of the people's higher expectations of the civil service. "They'll expect a high-quality civil service that commensurates with the salary increase. Take this opportunity to increase productivity and the quality of service to the people," he added.
Highlighting a matter close to his heart, Abdullah said the government wanted the country's public sector to emerge as one that would achieve global distinction. "The government is counting on its employees to add value to their work. They should strive to reduce red tape, be friendly, transparent, responsive, creative -- putting the interests of customers above all else," he added. Abdullah said that civil servants should change their mindset to deliver services speedily, bearing in mind that they should play the role of facilitators and partners of the people and the private sector.
Source : Bernama
1 comment:
I have waited 15 years this good news... for a pay raise! However I have to keep my fingers crossed until we see the actual structure of the revision.. whether it is based on the P1 T1/P2 T2 or all the steps and I sure hope and pray that its all the steps!! Then only the celebration would be bigger!!
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