JPA: Critical service allowance costs Putrajaya over RM1b per year

Zurairi Ar
General view of the Public Service Department in Putrajaya December 26, 2019. — Bernama pic

KUALA LUMPUR, Dec 26 — The Public Service Department (JPA) has revealed today that Putrajaya would have spent RM1.05 billion next year, if it continues to pay the Critical Services Incentive Payment (BIPK) to new civil services hires.

In a statement, it said Putrajaya is already paying RM969.52 million this year, and this amount would be increased by 8.1 per cent next year.

If it were to continue, this increase in spending will go up to RM1.24 billion in 2022, it said.

“Based on the above, the BIPK allowance should have been abolished in total to those in the relevant 33 schemes. However, the government has decided that the BIPK payment will be continued to existing recipients.

“In this case, the government will continue to bear the cost of BIPK payment to existing recipients until the staff members leave their services,” it said.

 

 

 

The JPA also said that existing and new civil servants will still continue to enjoy 13 other allowances based on their occupational risks, work complexity, and skills.

It said a house officer with a pay grade of UD41 still receives a flexi work hour allowance of RM600 a month, while a medical officer still receives on-call allowance.

The department insisted again that the BIPK has been abolished as it is no longer relevant to attract potential hires into the 33 schemes.

For example, it said there are 24,657 applications for the medical officer post, but there are only 15,268 vacant spots — causing an excess of 9,488 applicants.

On December 20, the JPA had announced that doctors, engineers, architects and various professionals once deemed vital to Malaysia’s development will no longer receive a “critical” allowance when they join the civil service starting January 1, 2020.

The ruling administration’s decision to cut the Critical Service Incentive Payment (BIPK) will affect new workers across 33 critical service schemes.

The BIPK is a special allowance intended to attract and retain skilled workers in professions deemed vital to the country’s development.

The policy review has sparked widespread backlash, including criticism from Cabinet ministers who said the allowance cut could drive talent from the public sector.

Earlier today, the Ministry of Health said it will hold a meeting with the Public Service Department to discuss the Critical Service Incentive Payment issue as soon as possible.

 

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