Tuesday May 22, 2007

Salary increase for government servants from July 1

Pay rise for civil servants
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PUTRAJAYA: Civil servants nationwide cheered as the Prime Minister Datuk Seri Abdullah Ahmad Badawi announced a pay increase and the doubling of cost of living allowances.

Abdullah said the pay rise could be given because of the economic growth of 5.6%, the effect of fuel prices, positive trends of Bursa Malaysia and improved tax collection.

More than one million civil servants and 557,033 pensioners are eligible for the increase.

Abdullah said the salary increase, effective July 1, is also needed to stop the brain drain from the public sector.

Among the things he announced were:

> Salaries to increase between 7.5% for senior management and 35% for category two support staff;

> 100% increase in cost of living allowance (Cola);

> Police and army personnel to get additional 20% on the increase; and

> Pensions will be adjusted accordingly.

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