Budget 2026: Special Aidilfitri Aid Of RM500 For Civil Servants, RM250 For Retirees

KUALA LUMPUR, Oct 10 (Bernama) -- Datuk Seri Anwar Ibrahim today announced a Special Financial Assistance (BKK) of RM500 for all civil servants from Grade 56 and below, including contract appointees, with payments to be disbursed in early March next year in conjunction with Aidilfitri.

The Prime Minister cum Minister of Finance, said this assistance complements the second phase of public service salary adjustment, which involves an additional RM18 billion expenditure, as well as ongoing support via the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes.

“The special assistance of RM250 will also be given to all government retirees, including both pensioned and non-pensioned veterans,” he announced when tabling Budget 2026 in the Dewan Rakyat.

In his approximately two-hour speech, Anwar also unveiled several other measures to appreciate the contributions of civil servants who, he said, have continuously upheld the MADANI Government’s mission to enhance national well-being.

Among the major initiatives is an allocation of RM2.2 billion to build, repair, and maintain government quarters for civil servants such as doctors, nurses, armed forces personnel, police, teachers, firefighters, and prison officers.

The Young Civil Servants Housing Financing Scheme under the Public Sector Home Financing Board (LPPSA) will be extended until Dec 31, 2026, expected to benefit up to 48,000 civil servants under the age of 30.

In line with salary adjustments and rising property prices, the maximum loan eligibility under LPPSA will be increased to RM1 million, with implementation starting as early as the fourth quarter of 2026.

To address promotion bottlenecks, the government will expand the Performance-Based Incentive Scheme to include management and professional groups in the federal public service, subject to specific conditions.

Eligible officers, those with strong performance records who have served for six to eight years but are stuck due to limited promotional vacancies, will receive a special monthly incentive equivalent to one Annual Salary Increment (KGT).

Starting in 2026, Anwar said the government will provide a RM900 monthly cost-of-living allowance to recipients of the Partial Federal Training Award (HLP Separa Biasiswa), and the number of recipients will also increase from 100 to 150 annually.

Judges will receive a salary increase of up to 30 per cent effective Jan 1, 2026, the first since 2015.

Anwar noted that judges, unlike other public servants, do not receive annual increments and are prohibited from engaging in business or holding positions outside the judiciary.

“Our judiciary has been through a period of scrutiny, but today, we can be proud of a more credible, independent, and high-integrity judicial system,” he said.

The government also agreed to raise the Cost of Living Assistance (BSH) for 4,000 KEMAS contract retirees from RM300 to RM500 per month.

Meanwhile, a special RM500 one-off contribution will be disbursed to 70,000 religious educators and personnel, including KAFA teachers, takmir teachers, imams, bilals, mosque caretakers (noja), and marbuts, with an allocation totalling RM35 million.

In honour of Malaysia’s military veterans, Anwar also announced a RM500 special payment for nearly 120,000 recipients of the Pingat Jasa Malaysia, with an allocation of RM60 million.

In closing his budget speech, Anwar reaffirmed that all members of the Cabinet will maintain their 20 per cent salary cut, underscoring the government’s commitment to fiscal responsibility.

-- BERNAMA