Minimum Wages Increase To RM1,200 For Civil Servants
Under the rationalisation of the public service scheme – effective July 1, 2016 – civil servants in the lowest grade (Grade 11) will earn RM1,200, compared to RM837 a month now. Combined with existing allowances, employees in this grade will enjoy a take-home pay of about RM1,500.
Raising salary grades and improving entry requirements would allow civil servants to have bigger take-home pays. The rationalisation is aimed at ensuring that the civil service has a competent workforce. This is also aimed at retaining the best talent, creating flexibility and also providing opportunity for career advancement. Approximately 1.6 million civil servants were set to benefit from the rationalisation, which will include salary adjustments for all grades.
Grade 17 and 27 would be discontinued and employees in these two grades would be upgraded to Grades 19 and 29 respectively. Grade 17 is given to employees with Sijil Pelajaran Malaysia (SPM) certificates while Grade 27 are employees with Sijil Tinggi Persekolahan Malaysia (STPM) certificates and diploma holders. Abolishing the lower grades like Grade 17 and replacing it with Grade 19 would mean a new employee will start their career at a higher level.
Those employed under Grade 17 with a current pay of RM935, will soon enjoy a higher minimum salary of RM1,350 a month after they are moved to Grade 19. Grade 27 employees with a starting pay of RM1,362, will now earn at least RM1,493 after being upgraded to Grade 29.
The new remuneration scheme will also see the existing 252 public service schemes upgraded and trimmed into 240 schemes. The scheme would benefit not only existing employees but also future employees who will join the civil service with a higher grade and starting pay.
The rationalisation would also see better recognition for Technical and Vocational trainees (TVET). Under the new scheme, those with a polytechnic certificate will be on par with those with a diploma or STPM qualification. Prior to this, those with polytechnic certificates were placed on the same level with SPM entrants. This is to provide greater opportunity to those with skills qualifications to join the public service.
The Government would spend about RM1 billion to finance the new public service scheme, which has been accounted for in Budget 2016. It would help civil servants cope with the rising cost of living. However, public servants will be given a choice to opt in or opt out of this scheme.