SUNGAI PETANI: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) has reminded its members not to take on new debts following the first salary increment under the Public Service Remuneration System (SSPA), which comes into effect today.

Its president, Datuk Dr Adnan Mat, urged civil servants to manage their finances prudently, despite the eight per cent salary increase starting in Dec 2024.

He advised that there is no need for civil servants to take out new loans or overlap existing ones, as this could lead to reduced productivity due to the burden of excessive debt.

"While some may feel inclined to take out new loans or overlap existing ones, Cuepacs strongly advises against it, except for housing loans meant for long-term needs. Personal loans often deviate from their original purpose. Therefore, do not let this salary increase serve as an excuse to incur new or additional debt. Cuepacs stands firm against all forms of unnecessary loans," he told reporters after attending the Kuala Muda District's monthly assembly today.

Adnan also stressed that civil servants should maintain their current spending habits, despite the salary adjustment under the SSPA.

Under the SSPA, officers in the Implementing, Management, and Professional groups will receive a phased salary adjustment of 15 per cent: eight per cent in Phase 1, starting December this year, and seven per cent in Phase 2, beginning January 2026.

Meanwhile, Adnan expressed Cuepacs' gratitude to the government for the salary increase.

"As civil servants and pensioners, we deeply appreciate the salary adjustment and extend our sincere thanks to Prime Minister Datuk Seri Anwar Ibrahim for this decision. We also support the prime minister's call for all civil servants to reciprocate this increment by improving our productivity and integrity," he said.

https://www.nst.com.my/news/nation/2024/12/1150519/cuepacs-warns-against-new-debts-after-salary-increase