SSPA Addresses Disposable Income Gap Amid Rising Cost Of Living – JPA

KUALA LUMPUR, Jan 20 (Bernama) -- The implementation of the Public Service Remuneration System (SSPA) is a strategic government move to address the issue of the disposable income gap among civil servants amid the rising cost of living.

Public Service Department (JPA) Salary and Allowances Division director Hasmarulaini Omar said the shift from the Malaysian Remuneration System (SSM) to the SSPA was critical, given that the last comprehensive salary adjustment was carried out in 2012.

She explained that over the 22 years since the implementation of the SSM in 2002, the employment landscape, technology and economic demands had changed drastically, thus necessitating a more holistic and sustainable review of the remuneration system.

“The main challenge identified is the imbalance between civil servants’ disposable income and inflation. In addition, the government must also consider national fiscal sustainability in managing emolument expenditure and retirement benefits,” she said on Bernama’s Ruang Bicara programme recently.

Elaborating on the uniqueness of the SSPA, which was now entering Phase 2, Hasmarulaini said the system was not merely focused on salary increases, but was instead grounded in the philosophy of total rewards.

She said the SSPA was introduced with four main objectives, namely to recognise high-performing civil servants, enhance the efficiency of service delivery to the people, optimise human resources, and improve the overall quality of the public service.

“We are not only looking at the financial aspect. Phase 2 of the SSPA places specific emphasis on talent development, digital competencies and clearer career pathways. This is important to ensure the public service remains relevant to future needs that are technology-driven,” she explained.

Touching on talent competition with the private sector, Hasmarulaini acknowledged that the government might not be able to compete fully in terms of cash salary value, but the public service offered a broader welfare package.

“Our package is comprehensive. In addition to salary and fixed emoluments, civil servants enjoy various other benefits such as medical facilities, leave, and a sustainable working environment. The principle of ‘rate for the job’ continues to be practised to ensure that remuneration is commensurate with workload and academic qualifications,” she said.

The SSPA, which came into effect on Dec 1, 2024, is a major government initiative to replace the SSM. It was introduced as a reform in the public service to boost staff motivation through a more competitive salary structure as well as a fairer and more transparent performance evaluation.

-- BERNAMA