Govt refining amendments to proposed civil remuneration scheme, says Dr Zaliha

KUALA LUMPUR: Amendments to legislation related to the proposed civil remuneration scheme are currently being refined, says Dr Zaliha Mustafa.

In a written reply, the Minister in the Prime Minister's Department (Federal Territories) said that the government is currently reviewing the proposed new scheme to optimise the hiring process in the civil sector, following the increasing yearly financial implications.

“For the time being, the existing pension scheme for serving employees and retirees from the civil service remains in place.

“This review cannot be delayed any longer, considering that in 2023, pension expenditures amounted to RM32.01bil and are expected to reach RM46.36bil by 2030. The average projected increase in pension payments is nearly RM2bil per year,” she said on Feb 27.

Dr Zaliha is replying to a question by Dr Abdul Ghani Ahmad (Jerlun-Perikatan Naisonal) on the government’s stance on the amendment of the Federal Constitution to abolish pensions for civil servants.

Therefore, Dr Zaliha, who is also the Sijangkang MP, said in efforts to ensure the government could manage the nation's financial expenditure more sustainably, a new permanent appointment method was being examined.

The results of the review would then be presented to the Cabinet for consideration and approval, she said.

“In this regard, the need for amendments to all relevant legal provisions for the purpose of the new permanent appointment method for civil servants is being carefully considered,” she added.

On Feb 15, the Public Service Department (PSD) said the decision to improve the civil service salary structure system was expected to be announced during the tabling of Budget 2025 this year.

It said that the proposed improvement would be finalised and presented to the Cabinet for approval at the beginning of the second quarter of this year at the latest.

PSD added that civil servants could submit proposals to improve the existing salary system covering all aspects of service through a review portal at before March 1, 2024.

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