COMP NEWS – Malaysia’s Prime Minister is championing a new public service compensation structure for government workers that will include pay raises for many of the country’s civil servants.
KUALA LUMPUR, Aug 16 (Reuters) – Malaysia will switch to a new public service compensation scheme from Dec 1 that will see broad pay hikes and salary restructuring for the country’s 1.6 million civil servants, Prime Minister Anwar Ibrahim said on Friday.The move comes as the government looks to implement fiscal reforms, including fuel subsidy cuts and higher taxes, while increasing financial aid to the needy.Anwar said civil servants in top management roles will receive a salary hike of 7%, while those in professional and executive roles will see an adjustment of about 15%.Income increases for all civil servants will range between 16.8% and 42.7%, and Anwar said the potential impact on prices had been taken into account when deciding on the changes.The salary adjustments are expected to cost the government more than 10 billion ringgit ($2.25 billion) a year, with further details to be announced in the 2025 budget, he said.
To read more about Malaysia’s government worker wages click here.
For more Comp News, see our recent posts.
Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as vested stock options and variable incentive pay.
