Last updated on 8 March 2012 - 09:13pm
PUTRAJAYA (March 8, 2012): The Public Service New Remuneration Scheme (SBPA), which was introduced on Jan 1, will be abolished, while the previous Malaysia Remuneration System (SSM) will be brought back with some improvements.
Prime Minister Datuk Seri Najib Abdul Razak, made the much-awaited announcement today, and revealed salary adjustments for the different public service grades, ranging from 7% to 13%.
Employees in the management and professional group from grade 1 to 54 will have their salaries adjusted by 13%.
There will be a 9% adjustment for the main grade and special grade A, B and C; 8% for the staff grades 2 and 3; and 7% for staff grade one and the chief secretary to the government.
These salary adjustments will take effect from Jan 1, with payments to be made from March or April.
The prime minister made the announcement in an address to over 10,000 people, including heads of government departments and statutory bodies, as well as senior civil servants at a special meeting at the Putrajaya International Convention Centre (PICC) today.
Najib also said that the government had agreed for the Cost of Living Allowance (Cola) to be increased from RM200 to RM250 for the B area (smaller cities such as Batu Pahat, Alor Star, Nilai, Port Dickson, etc), and from RM100 to RM150 for the C area (rural and remote areas).
He further announced that a special commission will also be formed to further review the civil service in a more comprehensive and holistic manner.
"Any suggestions recommended to this special commission will be considered according to the financial capability of the government," said Najib. His announcement was televised live on RTM and TV3.
Najib said this is in line with the government's commitment as announced in the 2012 Budget on Oct 7, last year.
The government had allocated RM64.1 billion for the wages and pensions of government employees under the 2012 Budget.
"It pleases me to announce that the streamlining of the Matrix Salary Schedule of the SSM according to the grades," he said.
The SSM structure will be tweaked from the Matrix Salary Schedule to the Minimum-Maximum Salary Schedule, with a yearly increment of between RM80 and RM320 for grade 1 to grade 54.
The annual increment for Jusa grades will remain according to the SSM.
The government has also agreed to maintain the present Critical Service Incentive Payment; Federal Incentive Payment; Rural Incentive Payment and the Education Subjects Incentive Payment, which is under the SSM.
Najib said the government will maintain a career pathway based on the 'time-based' principle as announced in Budget 2012.
"I hope that the announcement will ease the dissatisfaction that exists among civil servants at various levels.
"For other issues related to the services and schemes of service, the matter will be reviewed by the commission which I announced," he said.
About 1.4 million civil servants had been awaiting the announcement on the SBPA, which came four days ahead of schedule.
The SBPA was scheduled to be implemented on Jan 1 this year, but it was postponed after Congress of Unions of Employees in the Public and Civil Services (Cuepacs) protested against the stark salary difference between those in the upper tier JUSA and Premier grades numbering about 2,600 officers, and those in Grades 54 and below.
Cuepacs listed seven issues where they requested the government to conduct a review on including the imbalanced salary scheme and not recognising seniority.
Najib then directed that the scheme be reviewed with the formation of a task force headed by the former director-general of the Public Services Department, Tan Sri Ismail Adam, to study various shortcomings.
The taskforce was given until April 16 to complete its study.