PETALING JAYA: The decision to implement a new system to hire civil servants on a contract basis without pension may make government jobs less desirable to young talent.
Youth activist Beh Zeng Kang said contract hires and no pension will deter young people because it may give a sense of insecurity for the future.
“This move, if done, will reduce the benefits and privileges of working in the civil service. Policymakers should ideally consider the well-being of the civil servants.
“With the current low wages in the civil service sector and rising cost of living, the existing Employees Provident Fund (EPF) contribution scheme by employers and employees is inadequate to build a substantial retirement fund,” he added.
Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz said that the contract appointment system for new recruitment in the civil service takes effect from Feb 1.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the government would spend some RM120bil to cover pension payments by 2040 if new salary schemes to hire new civil servants were not introduced.
A Universiti Malaya law student who wants to be known as Tarcaini also echoed Beh’s sentiment.
“The younger generation is a valuable asset to the country’s economic growth, so such a scheme will definitely limit our potential to perform effectively.
“Abolishing a long-established benefit of pension is clearly not the best move. Some join civil service to secure a permanent position and of course, the benefit of pension,” she said.
Tarcaini also said that often only private sector employers participate in career exhibitions and more promotions on civil service opportunities should be done.
“It is important to note that while a flexible job is effective for youth, offering job security and benefits is equally important.
“The government should always make decisions in consideration of all relevant parties, especially the younger generation,” said Tarcaini.
Mahasiswa Demokratik Malaysia secretary-general Zuren Zulaikha listed the advantages of working in the government sector which included pensions, allowances and job security.
She felt that if the move was implemented, the “privilege” of working in the government would be gone.
However, Malaysian Youth Council president Mohd Izzat Afifi Abdul Hamid said that government jobs will remain attractive regardless of whether the pension scheme is replaced with EPF contributions.
“It is the most stable work with a fixed increment scheme, while the pay scheme which is about to be reviewed will make their pay competitive.
“This will also drive better work performance at all levels,” he said when contacted.
When asked about some recommendations especially in attracting young talent into the civil service, Mohd Izzat said it can be done by increasing the pay scale and salary, including improved benefits.
He added that digitalisation of government services, hybrid working arrangements, flexible timing, especially for working mothers, improved paternity and maternity leave, and access to more robust and free healthcare are also some of the attractive features.
