JOHOR BARU: While the salary hike for civil servants is something that should be applauded, informal workers should also be taken care of, says Pasir Gudang MP Hassan Abdul Karim.

The lawmaker added that the government's move to raise the salaries of public workers, especially those in the low-paid category, was a good and right move.

“This will help create a middle class that will grow in Malaysia. However, the government should not overlook the existence of another class of Malaysian workers.

“They are not civil servants but work in government buildings such as schools, hospitals and clinics as cleaners, security guards, and gardeners on contracts with low wages,” he said here on Saturday (Aug 17).

Hassan then said that there are a large number of informal workers in the country, adding that they have needed government intervention in their defense when they were oppressed by employers.

“The low salary scale, long working hours, Employees Provident Fund (EPF) and Social Security Organisation (Socso) contributions are sometimes non-existent. They are denied the minimum wage and have no job security,” he said.

Hassan added that he was hopeful the government - especially the Human Resources Ministry - would help solve the issues faced by many of these informal workers.

On Friday (Aug 16) salaries in the civil service were raised by between 7% and 15% and this is the first pay hike in 12 years.

However, this comes with conditions to bring about major reforms in Putrajaya.

Datuk Seri Anwar Ibrahim announced a 15% pay raise for officers in the implementing, management and professional groups and a 7% hike for officers in top management and professional roles.

The Prime Minister said the increment will be implemented in two phases, the first in December this year and the second in January 2026.

For civil servants in the implementing, management and professional groups, salary adjustments will start at 8% in the first phase and another 7% raise in the second phase, he said.

For officers in top management and professional roles, Anwar said they will receive a 4% raise in the first phase and another 3% raise in the second phase.

“We hope this will motivate the civil service to strive for their best for the nation,” he said during the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) yesterday.

Anwar said Putrajaya had allocated over RM10bil for the civil service salary adjustment.

Taking into account the compounding effect, he said the range of increments would be between 16.8% and 42.7%.

“For example, a teacher who worked for five years with a salary of RM3,838 would receive a 8% increase in Phase 1, which amounts to RM4,085.44.

“When salaries are adjusted in Phase 2, they will receive another 7% hike, increasing their income to RM4,559.24,” he added.

To better motivate civil servants, Anwar said a performance-based incentive will be provided to officers with at least six years of service.

He said Putrajaya would also recognise and reward subject matter experts, while the Armed Forces will see an increase in their Cost of Living Aid from RM300 to RM500 a month.

Anwar said the salary hike is to help civil servants cope with the current inflation rate.

“Before this, civil servants only received a 5.8% hike 12 years ago, when inflation was 21%. I know that for civil servants below Grade 26, it is very tough,” he said.

In 2012, then-prime minister Datuk Seri Najib Razak announced a salary increment of between 7% and 13% for officers up to Grade 54 and RM6bil was allocated for that purpose.

Anwar said beginning December this year, the national remuneration system will be replaced with the civil service remuneration system (SSPA).

“The SSPA contains the spirit of the civil service reforms that is needed to ensure the Malaysia Madani agenda is a success.”

He also said the SSPA is a performance-based remuneration system where those who excel will be rewarded.

https://www.thestar.com.my/news/nation/2024/08/17/take-care-of-informal-workers-too-says-pasir-gudang-mp