KUALA LUMPUR: Government retirees can look forward to more good news as their pension rates, already increased this month, are set to rise again in January 2026 in line with the adjustments under the Public Service Remuneration System (SSPA).

The second phase of the adjustment will see a maximum seven per cent increase for all retirees.

This will be based on their last-drawn salary up to this month through the SSPA adjustments.

The senior management group would receive a 3 per cent increase, while the executive and management as well as professional groups would receive a 7 per cent increase.

On Dec 18, under the first phase of the adjustment, retirees received a maximum 8 per cent increase based on their last-drawn salary.

For those who retired before 2013, the 8 per cent increase is calculated based on their final salary as of December 2012.

Meanwhile, retirees who left the service on or after January 1, 2013 would have their 8 per cent increase calculated based on their last-drawn salary.

The senior management group received a 4 per cent increase, while for the executive and management and professional groups as well as those with a last-drawn salary of over RM 3,000 received an 8 per cent increase.

For those with a final salary of less than RM 3,000, the increase was RM 240.

Details were outlined in the Frequently Asked Questions (FAQ) document released by the Pension Division of the Public Service Department (PSD)."Following the announcement by the Prime Minister (Datuk Seri Anwar Ibrahim) on Aug 16 regarding the SSPA, pension adjustments will also be made based on the last-drawn salary of retirees effective Dec 1, in line with the salary adjustments for public servants implemented by the government.

"The salary adjustments will be carried out in phases, with Phase 1 taking effect on Dec 1 and Phase 2 on Jan 1, 2026," the FAQ said.

Separately, Anwar in a press conference in Subang Jaya yesterday (Dec 21) said the government had agreed to continue providing the Special Recognition for Retirees (PKKP) aid to retirees and derivative pension recipients who previously benefited from it.

This was to ensure that they receive a higher pension rate to safeguard their well-being in facing the rising cost of living.

The PKKP means that the two per cent annual pension increments enjoyed by retirees would be maintained in the form of a special aid.

Retirees and their caregivers told the New Sunday Times that they were grateful for the increase, as it could ease their burdens.

Fauziah Shariff, 57, a part-time cook and caregiver to her 84-year-old mother, who suffers from Parkinson's disease, said her mother's pension had been raised by RM144.

"My mother can barely take care of herself due to her condition. This increase will greatly help me buy essential items for her, like diapers and medication."

A nurse, who retired in 2008, said she received a RM219 increase in her pension and looked forward to the adjustments that would be made in 2026.

"I am very happy. This increase will help ease my burden, especially as I am old and need to spend more on healthcare and other expenses," she said, declining to be named.

Another retiree, who was a school's senior assistant, said he received a RM300 increase and was grateful.

"I received a RM300 increase in pensions. I am very grateful as this could help with my expenses."

https://www.nst.com.my/news/nation/2024/12/1151459/pension-rates-rise-7pct-2026