THE new salary scheme for civil servants to be officially announced soon is much anticipated and welcomed by all strata of the civil service in Malaysia.
It has been reported that the salary hike would be implemented in two stages with a gap of one year apart. The first salary hike, embodying the initial implementation, will take effect on Dec 1, followed by the second phase on Jan 1, 2026.
However civil servants who retire late next year would not be entitled to the second phase increment which is seven per cent for the professional category and three per cent for the upper management category.
The perceived problem lies in the pension entitlement. The pension of a civil servant is based on his last drawn salary.
As such, a civil servant who retires in November or December next year cannot avail himself of the second phase increment whilst a person who retires in Jan 2026 can.
The ensuing effect is that the pension entitlement would vary significantly when the gap of retirement is only a few short months apart.
Without an adjustment, the new salary scheme will not reflect proportionately the contribution of some civil servants who may have been in service for over 20 years.
Thus, it is hoped that the government will make the appropriate adjustments to assist civil servants who retire late in 2025.
DR JOHN CHUAH CHONG OON
Senior Lecturer, Faculty of Law,
UiTM, Shah Alam,
Selangor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times