SUBANG (Dec 21): The government will continue its Special Appreciation for Pensioners (PKKP) initiative, aimed at supporting affected pensioners and derivative pension recipients, to ensure the welfare of this group is well taken care of.

Prime Minister Datuk Seri Anwar Ibrahim confirmed that the Cabinet made this decision on Friday.

“The Public Service Remuneration System (SSPA), which came into effect on Dec 1, includes pension adjustments for pensioners and derivative pension recipients. These adjustments are based on the civil service salary review, in accordance with Section 3 of the Pension Adjustment Act 1980 (Act 238),” he explained.

“The pension amounts will be adjusted according to the percentage increase in the final salaries of the pensioners, based on their respective service groups. These adjustments will take place in phases, on Dec 1, 2024, and Jan 1, 2026,” he said during a press conference addressing various government and current issues here.

Anwar said that the continuation of the PKKP initiative aims to ensure pensioners receive sufficient support to manage the rising cost of living, thereby reflecting the Madani government's commitment to compassion, in line with the concept of Ihsan.

Also present was the Communications Ministry secretary general Datuk Mohamad Fauzi Md Isa.

The Cabinet's decision made on Friday resolved the concerns of approximately 900,000 government pensioners, who had been awaiting an official explanation regarding their pension rates, specifically on whether their pensions will be adjusted in accordance with the new salary scheme.

Meanwhile, the prime minister emphasised that wage rates are crucial, as economic growth must be aligned with salary increases. He urged the private sector to take a page from the government’s approach, pointing out that some companies are making substantial profits.

Anwar acknowledged that while he cannot compel the private sector to increase wages, he has set a positive example by implementing a salary adjustment for the public sector, despite its significant financial implications.

“We expect and stress that the public service performance should improve — becoming more efficient, transparent, and free from corruption and malpractice. If wages remain stagnant despite these efforts, it would be unjust,” Anwar said.

“That is why I hope the private sector will follow the example set by the government. If companies are making good profits, they should share a portion with the workers by increasing wages. The government should not interfere, but it should provide guidance,” he said.

He added that governance would remain his top priority next year, with instructions for the chief secretary to the government, all directors general, and heads of departments to monitor and report any misconduct within their respective departments.

“I will not tolerate outdated practices, such as direct negotiations or the stealing of commissions. This is not an easy task, as we are confronting systemic issues. It’s not just about ministers; it also involves lower-level officers. It is fundamentally about governance and careful management,” he said.

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