PUTRAJAYA, August 17 – Prime Minister Datuk Seri Anwar Ibrahim has announced a significant salary increase for civil servants, with increments ranging from 7% to 15% under the newly revamped Public Service Remuneration System (SSPA). The phased implementation will begin this December, with the first phase offering an 8% raise for those in lower and middle grades and a 4% increase for top management. The second phase, effective January 2026, will add another 7% and 3% to these respective groups’ salaries.

Anwar emphasized that these increases are part of a broader reform of the civil service pay structure, focusing on performance-based incentives. He highlighted that the salary adjustments, which will only apply to those opting into the SSPA scheme, are designed to reward merit and performance. Civil servants who perform well, regardless of tenure, will benefit from these increments, while those deemed underperforming may not see the same advantages.

In addition to the salary increments, the government has allocated over RM10 billion for the adjustment, with additional incentives for officers who meet specific criteria, including one-off promotions and recognition for expertise in critical areas such as AI, cybersecurity, and energy transition. Anwar also announced a RM200 increase in the cost of living aid for eligible army veterans, raising their monthly support to RM500. The Prime Minister expressed hope that these measures would motivate the civil service to excel in their duties and contribute to national progress.