Malaysia PM Anwar to increase pay for government workers from December
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Income increases for all civil servants will range between 16.8 per cent and 42.7 per cent.
PHOTO: ST FILE
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KUALA LUMPUR - Malaysia will switch to a new public service compensation scheme from Dec 1 that will see broad pay hikes and salary restructuring for the country's 1.6 million civil servants, Prime Minister Anwar Ibrahim said on Aug 16.
The move comes as the government looks to implement fiscal reforms, including fuel subsidy cuts and higher taxes, while increasing financial aid to the needy.
Datuk Seri Anwar said civil servants in top management roles will receive a salary hike of 7 per cent, while those in professional and executive roles will see an adjustment of about 15 per cent.
Income increases for all civil servants will range between 16.8 per cent and 42.7 per cent, and Mr Anwar said the potential impact on prices had been taken into account when deciding on the changes.
The salary adjustments are expected to cost the government more than RM10 billion (S$2.97 billion) a year, with further details to be announced in the 2025 budget, he said.
Inflation is expected to trend higher in the second half of the year following diesel subsidy cuts in June
