Reminders for Civil Servants: Be Cautious of Excessive Loans with Salary Increases
SSPA: A Welcome Change, but with Caution
The Congress of Unions of Employees in the Public Service (CUEPACS) has reminded civil servants to be cautious of unnecessary excessive or overlapping loans following salary increases under the Public Service Remuneration System (SSPA). According to CUEPACS secretary-general Abdul Rahman Mohd Nordin, the SSPA should not be an incentive or excuse for civil servants to increase loans, which will ultimately lead to a financial burden.
Responsible Borrowing
"If you really want to do it, it should only be for purposes that will make a profit in the future such as housing loans or children’s education. Not to buy a mobile phone and so on. The risk is that civil servants will not have money," he said on Bernama TV’s ‘Apa Khabar Malaysia’ programme today.
SSPA Phases and Salary Adjustments
Under the SSPA, officers in the Implementing, Management and Professional groups will receive a phased salary adjustment of 15 per cent; eight per cent in phase 1 starting December this year, and seven per cent in phase 2 starting January 2026. Meanwhile, the Top Management Group (MOHE) will receive a salary adjustment of seven per cent with four per cent for Phase 1 and three per cent for Phase 2.
Timing of SSPA Implementation
Abdul Rahman emphasized that the implementation of SSPA was timely as the salaries of civil servants had not been reviewed for almost 12 years while the cost of living had been increasing throughout the said period.
"When it is not checked, with the current economic situation, it is a burden and a burden on civil servants because the cost of living has increased to the point that it is not enough to spend on a house," he said.
Respect for Civil Servants’ Decision
Regarding the 1,400 civil servants who chose not to accept the SSPA option, Abdul Rahman said it was inevitable and CUEPACS respected the decision.
Conclusion
In conclusion, while the SSPA is a welcome change, civil servants must exercise caution and responsible borrowing practices to avoid financial burdens. It is crucial to prioritize financial planning and make informed decisions that align with one’s long-term goals.
FAQs
- What is the Public Service Remuneration System (SSPA)?
The SSPA is a system that provides salary adjustments for civil servants in Malaysia. - What is the purpose of the SSPA?
The purpose of the SSPA is to review and adjust the salaries of civil servants to ensure they are fair and reflective of their contributions to the public service. - What are the phases and salary adjustments under the SSPA?
The phases and salary adjustments under the SSPA are as follows: 15% for Implementing, Management and Professional groups in phase 1, and 7% in phase 2; 7% for Top Management Group (MOHE) in phase 1 and 3% in phase 2.