[UPDATED] Labour Day surprise: Anwar announces civil servants’ salary bump of more than 13% starting Dec 1

PUTRAJAYA – It was music to the ears of civil servants as Prime Minister Datuk Seri Anwar Ibrahim today announced a salary increase of more than 13%, starting from December 1 this year.

He said that the revision to the Public Service Remuneration System (SSPA) would be the best yet, as history shows that the highest previous increase stood at 13%.

This increase, he said, would cost the government approximately RM10 billion.

He also added that the civil servant’s overall income, consisting of the minimum wage salary and fixed allowances, must exceed RM2,000 per month, starting this year. 

Currently, he said, the minimum overall income of civil servants stands at RM1,765.

“This is unreasonable. Civil workers are the pillars of our country’s economy, and they have to be appreciated better,” he said when speaking at the National Labour Day Celebration at the Putrajaya International Convention Centre (PICC), here.

Anwar also said that the Sabah and Sarawak state governments have also agreed to amend the Labour Ordinance of Sabah (Ordinance Cap. 67) and Sarawak (Ordinance Chapter 76).

“These amendments would align with the Labour Act 1955, which also applies in Peninsular Malaysia.

“The Sabah Labour Ordinance Bill (Amendment) 2024 and the Sarawak Labour Ordinance Bill will be tabled in the next Parliament session,” he added.

He said that the amendment would increase maternity leave from 60 days to 98 days, in addition to introducing seven days of paternity leave.

Anwar also hoped that the private sector would take note of today’s salary increase announcement and apply the necessary increments for their employees accordingly.

“I want to be firm that while this increase applies specifically to civil servants, it’s important for private sector companies to take note. I urge them to consider this matter seriously.

“They’ve seen significant profits, but it’s essential to recognise that these profits are a result of the productivity of their workers.

“So, if you have made some extra profits… give some to your workers. They deserve it,” he added.

He also said that Malaysia currently ranks 29th in the IMD World Competitiveness Ranking.

“We (Malaysia) ranked 38th in 2022, and last year we climbed to 29th. If we prioritise productivity over ‘quarrelling with one another’, I am confident we can break into the top 20 in no time,” he said.

He also said the Madani government is exploring the establishment of a gig-worker union. 

The prime minister said these unrepresented workers are a vital part of the larger group contributing to the country’s economy.

This Labour Day announcement comes with joyful tidings for civil servants following reports that pensions for new civil servants are set to be scrapped as the government faces a ballooning financial burden caused by an increasing number of retirees and longer life expectancy. – May 1, 2024