In a statement, the civil service union’s president Adnan Mat said those employed on a permanent basis will continue to retain their pensions and enjoy salary hikes.

“The formula used in the calculation of pensions, benefits and replacement leave is still the same, in line with the Pensions Act 1980.

“Cuepacs believes that human resource managers from the various government departments have engaged their staff regarding the SSPA circular.”

The SSPA comes into effect in December.

Adnan added that the revised salary structure will increase the disposable income of all civil servants and help them manage the rising living cost.

He also said the SSPA offered better chances for civil servants to be promoted.

“Job promotions will become more transparent and will be based on performance and meritocracy to ensure all civil servants are appropriately compensated for their efforts.”

SSPA, set to replace the Malaysian Remuneration System (SSM), will involve the salary restructuring of around 1.6 million civil servants. The last salary review was carried out in 2013.

In August, Prime Minister Anwar Ibrahim had said civil servants in top management will receive a 7% wage hike while those categorised as implementers, managers and professionals will see a 15% pay increase.

The increments will be implemented in two phases, with the first on Dec 1 and Phase 2 on Jan 1, 2026.