Civil servants first with new remuneration scheme in Malaysia

To address economic issues faced in the country, Malaysia’s Prime Minister is reviewing salaries of employees, starting with civil servants.
By: | December 7, 2023
Topics: Compensation and Benefits | Employee Experience | Employment Law | Malaysia | News | Talent Management

With the ongoing review of Malaysia’s Public Service Remuneration Scheme, priority would be given to employees dealing in professional technical work employed in the civil sector, said Datuk Seri Anwar Ibrahim, Prime Minister of Malaysia.

The decision to do so comes as the Malaysian government is looking to find solutions to address the economic situation that the country is facing, with the remuneration scheme portrayed as a “paradigm shift” that the country should embrace when adjusting salaries for the civil sector, reported The Star.  This change, said Anwar, reflects the country’s need for a salary adjustment compared to minor changes such as granting additional allowances, a relic procedure from two decades ago.

“We need to face the reality that Technical and Vocational Education and Training (TVET) is now different, and engineering, IT and digital technology are essential in the country.

“But when it comes to recognition from the government, the salary adjustments do not fulfil the requirement. This is where the paradigm shift, first mentioned by sociologist Thomas Kuhn, should be applied – there should be drastic changes in the remuneration scheme,” he said. The Prime Minister promised that any initiative that would be implemented would acknowledge the important role of civil servants holding technical professional positions in the national development agenda.

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Anwar also emphasised increasing professional technical training numbers to match the rising number of TVET graduates so that they would receive the salary they deserve. While most TVET graduates are employed, Anwar explained, the average salary of these employees is around RM 2,000 (US $428.04), which is inadequate.

“If there are similar training programmes conducted by PETRONAS in Sarawak or the training centre in Sabah, for example, it could provide them with the expertise to obtain wages between RM3,500 (US $749.06) and RM5,000 (US $1,070.09),” Anwar commented.