Budget 2020: Public service sector’s remuneration package upgraded

Soo Wern Jun
Prime Minister Tun Dr Mahathir Mohamad receives a copy of Budget 2020 from Finance Minister Lim Guan Eng in Parliament October 11, 2019. — Picture by Miera Zulyana

KUALA LUMPUR, Oct 11 — Finance Minister Lim Guan Eng today said the government is committed to uplifting the public service sector by improving some of the terms of its remuneration package.

In tabling the Supply Bill (Budget) 2020 in Parliament today, Lim said among the improvements will be the Cost of Living Allowance (COLA), which will be increased by RM50 per month beginning 2020.

Lim said with an additional allocation of RM350 million annually, civil servants will be allowed early redemption of accumulated leave for up to 75 days as replacement pay, for those who have at least 15 years of service.

On top of that, the Public Sector Home Financing Board (LPPSA) will offer free personal accident insurance (up to RM100,000 coverage) for two years to new government housing loan borrowers.

“In addition, to help relieve the burden of dependants to civil servants who have died in service, the government will improve current benefits such as the introduction of an ex-gratia death benefit of up to RM150,000 payable to dependents of the deceased, Annual Salary Movement (PGT) will be brought forward for civil servants who have died in service before the Salary Movement Date (TPG),” Lim said.

He added that an allocation of RM26 million will be set aside for the People’s Volunteer Corps or RELA who will enjoy a higher allowance of RM2 per hour beginning from January 1 next year.

“In recognition of their service, all personnel will receive a special allowance of RM200 a month, amounting to RM35 million. This will benefit 14,400 personnel of the Fire and Rescue Department of Malaysia,” he said.

Lim also announced an allocation of RM35 million for a one-off payment of RM500 to the 70,000 holders of the Pingat Jasa Malaysia.

In line with the Repair, Replace, and Restore (3R) philosophy, the government will allocate RM330 million to Property and Land Management Division under the Prime Minister’s Department to repair and maintain public service quarters, he said.

“RM150 million and RM250 million will be allocated for the repair and refurbishment of Malaysian Armed Forces family housing units (RKAT) and PDRM (Royal Malaysian Police) quarters respectively,” he said.

For civil servants who are Grade 56 and below, the government has announced a special payment of RM500.

Lim said government retirees will receive a special payment of RM250 and this will be extended to non-pensionable veterans which will be paid before the end of this year.

Meanwhile, the government will further increase the resources made available to the Malaysian Anti-Corruption Commission (MACC), by allocating RM10 million to undertake Risk Assessment Tests at all Ministries, Departments and Agencies.

He also announced that the government will also add an additional 100 personnel in 2020.

As a response to concerns voiced over custodial deaths and alleged mistreatment of suspects, the government will allocate RM50 million through GIACC to enhance detention procedures and facilities, in particular, the installation of 11,500 units of Closed-Circuit Televisions (CCTV) in police detention centres and immigration entry points.

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