Civil Servants Now Allowed to Serve Until They Reach 60

The Star Online

October 8, 2011

  Malaysia

CIVIL servants will now be able to serve two years longer, with the retirement age extended to 60, and also take home a bigger purse each month under a new remuneration scheme that also comes with better annual increments.

Besides that, they will enjoy a half-month bonus at the end of the year as a reward for achieving national development goals.

The extension in retirement age from 58 and the additional half-month bonus are among the highlights for civil servants in the 2012 Budget announced by the Prime Minister yesterday.

Datuk Seri Najib Tun Razak, who is also Finance Minister, said the age of retirement had been extended as civil servants are seen as still capable to contribute their skills and experience up to 60.

“This extension will not jeopardise the employment prospects of the younger people as both the public and private sectors will continue to create new job opportunities,” he said.

Recognising the support and commitment of the more than 1.3 million civil servants, he announced an additional half-month salary bonus, with a minimum payment of RM500, that will be paid with their December salary.

He said this would total to one-month's pay, with a minimum payment of RM1,000.

Najib said an additional assistance of RM500 would be paid out to government pensioners which would also total RM1,000 for the 618,000 retirees.

The total bonus and assistance payments for this year will come up to RM4bil.

A new era is also set to dawn upon the civil service as the Government embarks on a new civil service remuneration scheme, which will see an improvement in the salaries of civil servants through a single tier structure. It comes with additional increments.

Najib said this meant that the maximum salary for a particular grade would now be higher.

“For example, the new scheme will see a teacher on grade DG48 receiving a maximum salary of RM8,710, compared with RM6,325.39 under the existing scheme,” he said, adding that the scheme would also have an exit policy for under-performing civil servants and those who choose to leave the service.