KUALA LUMPUR: The proposed improvements on the public service remuneration system is expected to be finalised and presented to the cabinet in the second quarter of this year, said the Public Service Department (PSD).
It said a decision on the matter is expected to be announced during the tabling of the 2025 Budget, taking place at the Dewan Rakyat in October.
"Prime minister (Datuk Seri Anwar Ibrahim) chaired the civil service remuneration system review committee on Feb 13 (yesterday) that was also attended by Finance Minister II," it said in a statement.
The committee discussed and deliberated on enhancement initiatives in the review, especially on improving civil servants' disposable income, it said.
It said it was one of the focuses in strengthening the civil service's human capital to boost the public sector's productivity in realising Malaysia Madani aspirations.
"Civil servants of all levels are still able to submit their suggestions to semakansaraan.jpa.gov.my before March 1.
"The prime minister also emphasised on the elements of civil service reform, such as digitalisation of the delivery system, holistic strategic cooperation and the Whole-of-Nation approach to drive efficiency, effectiveness and professionalism of civil service in giving the best services to the people and country."
It was reported that the government planned to introduce a new civil service hiring policy including a "no-pension" scheme for new hires - to tackle the ballooning allocation for its remuneration system.
This has prompted pushbacks from the public, with some quarters calling for the government to revoke pension for politicians and political appointees first.
In response, Anwar said the review on pension schemes also applies to politicians, and that the matter was being further studied before any decision could be made.
Several politicians had since volunteered to give up their pension in a move to support the proposed reform.