Civil servants to receive RM500 tomorrow

Under Budget 2016, some 1.6 million civil servants will receive RM500 tomorrow. – Reuters pic, January 3, 2016.

Some 1.6 million civil servants will receive RM500 tomorrow while one million retirees will receive RM250 as announced in Budget 2016.

A Public Service Department (PSD) circular today said the payment would be given to all civil servants who served in 2015.

"(It) is on condition the employee had served at least 30 consecutive days, including all types of leave with fully and partially paid leave, weekly rest days, weekly holidays and public holidays from January 1 to December 31, 2015."

Civil servants appointed permanently, temporary, contract of service, interim teachers and those who went on half pay leave were eligible for the payment, said PSD.

It involves an allocation of RM645 million as announced by Prime Minister Datuk Seri Najib Razak in Budget 2016 tabled on October 23 last year.

In appreciation of the dedication and contribution of civil servants, the government has agreed to allocate RM1.1 billion for the salary increment equivalent to one annual increment according to grades.

The circular said the government will also improve 252 salary schemes for 406,000 civil servants and set the minimum starting salary at RM1,200 per month.

The minimum pension was set at RM950 per month involving some 50,000 retirees with at least 25 years of service.

Implementation of these measures will be effective July 1, this year with an allocation of RM1.4 billion.

Meanwhile, Congress of Unions of Employees in the Public and Civil Service (Cuepacs) president Datuk Azih Muda thanked the government for the payment.

"Civil servants have been waiting for this payment as it can reduce their financial burden. We urge civil servants to use it wisely," he said when contacted by Bernama. – Bernama