PETALING JAYA: The RM18bil allocated for the Public Service Remuneration System (SSPA 2.0) under Budget 2026 is expected to boost morale, efficiency and productivity among civil servants, says the Congress of Unions of Employees in the Public and Civil Services (Cuepacs).
Its president Datuk Dr Adnan Mat said the allocation reflects the government’s commitment to restructure the salary and benefits system to make it fairer, more balanced and sustainable across all service groups.
“With the SSPA 2.0, improved incentives and comprehensive housing support, civil servants are now more motivated than ever to serve the people and the country with dedication,” he said in a statement yesterday.
Adnan also thanked the government for the RM2.2bil allocation to build, maintain and upgrade quarters for doctors, nurses, teachers, police and the military, as well as prison and Fire and Rescue Department personnel.
He further welcomed the housing loan guarantee of up to 120% for contract civil servants and Bank Simpanan Nasional’s RM500mil fund for first-home loans, saying these measures would strengthen housing stability and welfare, especially among younger and contract officers.
He said the RM500 Special Financial Aid (BKK) for civil servants in Grade 56 and below, including contract staff, and RM250 for pensioners and veterans would help ease cost-of-living pressures ahead of Hari Raya Aidilfitri next year.
“The expansion of the Performance-Based Incentive to management and professional groups is also timely, especially for those awaiting promotions due to structural limitations,” he said, adding that Cuepacs supports the Cabinet’s continued 20% salary cut as a show of integrity and responsible leadership.
“The allocations reflect the Madani government’s recognition of the contributions of civil servants as the backbone of the nation’s administration and policy implementation.”
Meanwhile, civil servants on the ground have also welcomed the Budget measures, describing them as timely and motivating.
Administrative assistant Amirul Azahar, 43, lauded the move to allow civil servants to withdraw up to RM10,000 from the Cash Award in Lieu of Leave scheme.
“Not every government employee can afford to perform the haj, especially with their spouse, even after years of saving. Allowing us to make an early withdrawal before retirement is a great help,” he said. The government has allocated RM10mil for this initiative.
Pensioner J. Mahinder Singh, 75, said he is grateful to be included in the BKK assistance.
“That extra cash will go a long way for my medicines. I’m glad we were not forgotten,” he said.
Medical officer Sue, who preferred not to reveal her full name, was equally pleased with the announcement that RM1bil will be set aside for Syarikat Jaminan Kredit Perumahan to provide home loan guarantees for contract civil servants.
“I know of contract civil servants who couldn’t get bank loans to buy their first house. This move will help more young people in the civil service to own homes faster,” she said.
