KUALA LUMPUR – The government is expected to bear 4.5 times lower costs under the revised civil service remuneration scheme, said Federal Territories Minister Dr Zaliha Mustafa (Sekijang-PH).
In a parliamentary written reply to PAS MP Ahmad Fadhli Shaari (Pasir Mas-PN), Zaliha said that the new system, which is being drafted by the government, will provide long-term relief for the country’s fiscal burden.
“The simulation used in the initial studies of the new remuneration system shows that the proposed contribution method is 4.5 times lower compared to the cost of the existing pension expenditure for every civil officer,” she said.
Notably, four other lawmakers, namely Syed Saddiq Syed Abdul Rahman (Muar-Muda), Aminolhuda Hassan (Sri Gading-PH), Fong Kui Lun (Bukit Bintang-PH), and Datuk Ahmad Amzad Mohamed@Hashim (Kuala Terengganu-PN), had also posed queries on the same issue.
In her response to a question by PAS MP Ahmad Amzad, Zaliha said that the permanent appointment of civil servants, following the interim move to implement contract-only hires since February 1, is the prerogative of the respective department heads.
“Officers appointed on a contract basis (for an interim period of time) will be appointed on a permanent basis through the new public service remuneration system that will be finalised later.
“However, appointments to a permanent position are also subject to performance and certification from department directors,” the minister said.
Addressing a query from Amanah’s Aminolhuda regarding the potential impact of the new scheme on the productivity of public service members, Zaliha expressed her belief that it would not.
“It is expected that the productivity of civil servants will not be affected by the introduction of new retirement benefits.
“The ongoing review of the public service remuneration system also takes into account the ability of the public service sector to attract the best talent to serve the government,” she added.
Previously, Finance Minister II Datuk Seri Amir Hamzah Azizan said that this year, the government had allocated RM31 billion for pension payments to retirees, and the figure was expected to increase to RM120 billion in 2040.
He also pointed out that, in terms of the country’s financial management, 48% of the budget was allocated to emoluments and pensions.
“If we can lighten the (government’s) existing burden, we can channel the surplus to other areas that are important for the people and the country, such as education and better infrastructure facilities,” he said.
This came after Public Service director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz, in a circular dated January 15, said that a new method for the permanent appointments of civil servants would be introduced to strengthen the public service remuneration system in Malaysia.
The cabinet had also decided that, in the interim, the hiring of civil servants for permanent positions would be conducted through a contract of service system.
New intakes into the civil service are expected to contribute to retirement schemes such as the Employees Provident Fund and the Social Security Organisation.
However, existing civil servants hired before the new policy comes into effect will still be pensionable. – March 7, 2024