PRIME Minister Anwar Ibrahim has announced the largest ever increase in civil servants’ remuneration, at a rate of more than 13%.

He said that the increase will be effective from December 1 this year.

“This is the highest in the history of increments for civil servants,” he said during the Labour Day celebration at the Putrajaya International Convention Centre.

Anwar said civil servants’ overall income, comprising salary and fixed allowances, must exceed RM2,000 per month starting this year.

“Currently, the minimum overall income of civil servants is RM1,765. A new criteria and measurement will be introduced; the minimum overall income including allowances will be RM2,000.”

“The scheme was initially planned for implementation in January next year but will be implemented for their December salary,” the prime minister said. 

Anwar said the salary increase will involve an allocation of over RM10 billion. 

“This is so far the best increase. We will also examine from a financial point of view and how it can be covered but at not affecting the national debt more than it should be,” he said.

Meanwhile, Human Resources Minister Steven Sim said this year, they will revise the minimum wage rate.

“A 10-year study shows the minimum wage has a positive impact on low-income earners, with individual monthly wages increasing nearly 60% from 2010-2019.

“But we are aware that the minimum wage alone is not enough, especially for those with a moderate income or middle-income.”

Therefore, he said that among the government’s initiatives to improve the wage situation of Malaysian workers is to introduce a progressive wage policy to drive better wage compensation.

Sim also said that the ministry will allocate RM2.56 billion to provide various skills training for Malaysians.

“There are various courses offered in various fields – you name it, we have it, including the latest skill fields such as AI, robotics, 5G technology, computer coding, skills in the green economy, ‘green skills’ and so on.

“We will go all out on skills training. We want to ensure that every Malaysian, regardless of race, religion, gender, age, academic qualification, region, has the opportunity to improve their skills through upskilling, reskilling and cross-skilling.” – May 1, 2024.