Nation

New SSPA guidelines to be finalised within next two months

PUTRAJAYA: The final report on the Public Service Remuneration System Study (SSPA), which refers to the new civil service salary rules, is expected to be completed within the next two months.

Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, affirmed that the finalised guidelines would subsequently be presented for approval during a cabinet meeting.

"The initiation of the civil services salary alignment is underway.

"Both the Chief Secretary to the Government and the Public Service Department director-general have concurred to expedite the process, surpassing my initial expectations.

"However, this acceleration must be tempered with consideration for our economic capacity.

"I will preside over this meeting, and we anticipate concluding and presenting the decision within the next two months, prior to its submission to the cabinet," he said during today's Finance Ministry monthly assembly.

The SSPA study, which also focuses on aspects of salary increases and allowances in the public sector, is expected to take almost two years and is a reform initiative in the public service in line with the aspirations of Developing Malaysia Madani.

He said the government was steadfast in its commitment to actualise salary adjustments for public servants, a matter that had remained unaddressed for several years.

"I do not want to prolong this issue any further; civil servants have been waiting for 12 years for this matter to be re-examined. I will take fast-track measures to resolve this issue.

"The time has come for us to implement reforms, and it will be resolved shortly."

Previously, Anwar also announced that the government is committed to rolling out the new salary scheme by the end of this year.

He said the salary alignment study, typically conducted every 10 years, required extensive coordination across various government departments.

In August, the government announced that it was preparing to provide detailed information about the salary increase for approximately 1.3 million civil servants ahead of the presentation of the 2024 Budget in October.

Anwar added that the government's commitment to pension funds for this year was anticipated to surpass RM30 billion and is poised to escalate to RM120 billion by the year 2040.

"This discussion has been ongoing since the leadership of past prime ministers, and only this government exhibits the political resolve to thoroughly assess pension commitments.

"However, any forthcoming decisions will not adversely impact the existing pensions of public servants."

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on Jan 24 announced that civil servants hired from Feb 1 would no longer qualify for pensions and would instead contribute to the Employees Provident Fund (EPF) and Social Security Organisation (Perkeso).

He said the shift came as part of a broader initiative to phase out traditional pensions and the contribution rate for these schemes would align with the prevailing rates observed among current employees in the private sector.

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