PUTRAJAYA, Aug 16 — Civil servants across all grades will have their salaries increased under the new pay structure that will be phased in starting this December, Prime Minister Datuk Seri Anwar Ibrahim announced today.

The first phase of the increment will be 8 per cent for those in the lower and middle grades, and 4 per cent for the upper management.

The second phase of the scheme will take effect January 2026 and will see the two groups receive another 7 per cent and 3 per cent increase, respectively.

The new salary rates are part of Anwar’s reform of the entire civil service remuneration system. The revamped Public Service Remuneration System (SSPA) will replace the former scheme that Anwar said would stress on performance-based incentives.

"We met so many times to discuss this... that is why I don’t want people to think of this as a move to raise support,” he said in an address delivered to some 10,000 civil servants here.

"We took this step because we feel this is a just move for civil servants.”

Anwar first hinted at raising salaries for government workers on Labour Day, when he said the last time civil servants had a pay raise was more than 12 years ago, in anticipation that the move would be criticised.

The cost of the increase is estimated to be RM10 billion, Anwar said when reiterating that the figure was comparatively small and should not be politicised.

The prime minister then called critics of the new system as envious of the civil servants.

"We look at the macro level. We studied if this move can help spur growth and optimise our resources,” he said.

"We also looked at the possible impact on prices of goods if the increment is raised too quickly. All this was taken into consideration. So, I urge you not to entertain the views of those who are envious and cynical.”

The PM also acknowledged criticism regarding the level of public service in the country, but said the SSPA is meant to address these complaints.

Anwar said the scheme was both about uplifting public workers and encouraging them to perform better than currently levels.

"Those who excel will be rewarded but those who display good performance will be disciplined.”