GEORGE TOWN: A pay hike for civil servants in the state will incur the Penang government an additional cost of RM36 million, Chief Minister Chow Kon Yeow told the state legislative assembly sitting today (May 27).
Chow, however, said no decision had been made on the matter.
"If we implement (the pay hike for Penang civil servants), it will incur the state government an additional cost of RM36 million.
"However, even if we implement, it will only be from next year.
"As such, we need to prepare the budget from now on," he said.
Earlier this month, Chow said the Penang government would discuss a possible salary hike for civil servants in the state at the state executive council meeting.
He said the state Finance Department would first review and examine in detail the additional expenditure required if the state were to implement a salary increase.
On Labour Day, Prime Minister Datuk Seri Anwar Ibrahim announced a more than 13 per cent increase in civil servants' remuneration, among the highest in the country's history.
The increase would be effective from Dec 1 this year.
The last time the civil servants' salaries were revised was 12 years ago, and the highest increase in the past was at 13 per cent.
This year's increase would cost the government more than RM10 billion.
Meanwhile, Chow said the state government would continue to take measures to ensure prudent spending to reduce the annual deficit budget.