PM announces cancellation of new SBPA UPDATE

PUTRAJAYA: The Prime Minister today announced the cancellation of the new Public Service Remuneration Scheme (SBPA) and the adoption of an improved version of the current Malaysian Remuneration System (SSM).

Prime Minister, Datuk seri Najib Tun Razak and Chief Secretary to the Government Tan Sri Mohd Sidek Hassan listening to Cuepacs president Datuk Omar Osman speech at the Civil Servants Special Assembly with Prime Minister at PICC. Pix by Fariz Iswadi Ismail.

Datuk Seri Najib Tun Razak also announced salary adjustments of 13 per cent for employees in the management and professional group from grade 1 to 54, nine per cent for the Jusa A, B and C grades, eight per cent for the staff grades 2 and 3, and seven per cent for staff grade one and the Chief Secretary to the Government.

During the announcement, which he made at a special gathering with civil servants at the Putrajaya International Convention Centre here today, Najib also said that the government had agreed for the Cost of Living Allowance (Cola) to be increased from RM200 to RM250 for the B area, and from RM100 to RM150 for the C area.

The Prime Minister also announced the setting up of a commission comprising the relevant interest groups to make a comprehensive and holistic study of the remuneration system for civil servants.

He said any suggestion proposed by the commission comprising interested parties who worked using the principles of discussions and consensus would be considered according to the affordability of the government.

Najib said the SSM salary structure would be adapted from the Matrix Salary schedule to the Minimim-maximum Salary Schedule with the rate of Annual Salary increase (KGT) for Grades 1 to 54 fixed between RM80 and RM320 according to grade.

The rate of increase of the annual salary for JUSA grades and above remained according to the SSM annual salary increase and given adjustment according to the percentage agreed upon.

He said the government had also agreed that the Critical Service Incentive Payment (BIPK), Regional Incentive Payment (BIW), Interior Incentive Payment (BIP) and the Educational Subject Incentive Payment (BISP) would be maintained according to the existing regulation under the SSM.

For teachers, he said the government maintained the decision on career path improvement based on the time-based principles of the Education Service Officers as announced in the 2012 Budget.

"I hope this decision can ease the dissatisfaction among the various levels of civil servants. As for the other issues concerning the service and scheme of service, they would be studied by the commission announced earlier," he said.

Najib said the civil servants played an important role in ensuring the success of the implementation of the national transformation programme.

He said the SBPA which was introduced early this year had resulted in the feeling of uneasiness among civil servants and because the present government was sensitive to the needs of the people, it listened to their woes.

"We are not like those had planned to dismiss the civil servants when they had not even formed the government," he said, adding that following the feeling of dissatisfaction, the government had decided to review the SBPA on Jan 12.

He said a task force chaired by the Director-General of the Public Service Department was later set up and given three months to study all complaints and feedback submitted, and it had been given the responsibility to suggest a solution to the government.

Najib said the task force received 1,087 complaints and feedback besides several memorandums, and 23 unions had submitted proposals while eight trade unions comprising the Cuepacs, the National Union of Teaching Profession (NUTP), Royal Malaysia Police, Malaysian Armed orces, Malaysian Medical Association, Malaysian Dental Association, the Malaysian Academic Association Council and the Council of Registrars had submitted proposals.

He said the government was hoping for the civil servants to appreciate and work together in facing the challenge from the uncertain global economy, and although the government succeeded in taking the country out of the global economic uncertainty, efforts must be intensified to ensure that the country continued to be free of the uncertainty in the years to come.

He said that in making the decision, the government must think of the best measures, while it was giving priority to the interests of the people, at the same time it did not ignore the other factors, especially in terms of sustaining the national economic stability, or in other words, the government's financial capacity must be taken into account.

"Remember that whatever we do today will have a long-term impact. The government does not want Malaysia to face a financial tragedy like Greece or the other countries," he said.

Najib said in order to ensure that the national economy was not affected by the uncertain global economic scenario, the government must continue the efforts to reduce the national fiscal deficits.

He said that in 2010, the national deficit reached 5.6 per cent, while last year, the deficit was reduced to five per cent and this year, it was hoped that the deficit would further be reduced to 4.7 per cent.

The last salary revision was made in 2007, which saw civil servants enjoying a pay rise of between 7.5 per cent and 35 per cent, with the support group receiving a rise of 35 per cent and the highest group 7.5 per cent. -- BERNAMA 8 March,2012