The New Malaysian Pay Scheme: Skim Saraan Baru Perkhidmatan Awam (SBPA)


Najib announced a new remuneration scheme for the civil servants last Friday during the 2012 budget. The scheme known as the new Civil Service Remuneration Scheme, or in Malay; Skim Saraan Baru Perkhidmatan Awam (SBPA) will see an annual increment of between RM80 and RM320, in addition to another 7%- 13% increment for those who opt to accept the SBPA.

Sound wonderful, right? Those opting to decline being in the civil service, or those choosing to resign must have had a sour face last Friday. I think among them would be sacked deputy Prime Minister, Anwar Ibrahim who said the budget is unrealistic and an imitation to the oppositions proposed budget.  First of all, whoever released their budget first can of course claim someone imitated theirs, and as for being unrealistic due to the huge RM70bil extra expenditure compared to income, I guess the country may just dig into its federal reserves or something similar.  I’m no economist, so I can’t tell.  I do know that if this budget is called an ‘election budget’, I’d love to have an election budget every year! –minus the deficit that is.

Well, the SBPA is indeed good news for civil servants.  I’m thankful for it, and I bet many are.  Nonetheless, I do have one hope over the SBPA since no proper documentation has yet to be released.

The hope is not big, but it’s rather a worrying trend I seen in previous budgets and monetary give outs.  It’s regarding the giving of more ‘things’ to the employees which are of lower service grades, while their higher service grade counterparts get less.

In previous years, the government tends to give bigger increment to those of lower grade scale resulting in those only having a certificate/diploma catch up on those owning a degree.  While the intention is good, but it demoralizes those with higher qualification, while at the same time send out the wrong signal to the younger generation.  It shows that you do not need to pursue higher education, because you’d still get good pay.  A quick example is as follows:

Individual A earns RM1000, and Individual B earns RM1500.  Based on this, Individual A will get RM200 increment, while individual B will only get RM100.

The new pay would be RM1200 for A, and RM1600 for B, resulting in the difference in pay scale to decrease by RM400, instead of the initial RM500.

With that said, I hope that the 7-13% increment will not be according to service grade scale, but according to education qualification, experience, and seniority. An increment in pay should be balanced with everyone receiving equal percentage/amount.  A person having a Masters, should be paid more than those with a Degree, and a person serving over 10 years should be paid more than a person which just recently came into service.  On top of that, if one was having 20 years experience in a certain field, and just entered service, he or she should be paid more if compared to those with less experience in such a field.

Call me crazy or being unrealistic, but this is what I hope for under the SBPA.  I know I am no economist, and I am most certainly not an expert in handling accounting.  However, I do believe in rewarding indiduals according to merits and experience, but hey…. it’s just a hope of mine.  Shall it come true is anyone’s guess.  One thing’s for sure, I’m glad that there is a pay increase because my house monthly re-payment  just got smaller in ‘pinch-size’.

Since I’m at it, thank you dear Prime Minister for a wonderful gift in the 2012 budget.


  1. as usual it sounds good at first. but later everybody will know there is a catch here that they will regret. cuepac will again ask for improvement to the sbpa.

  2. I quite confuse . Is it related to kwsp and retire plan ? If all the while I’m choosing kwsp instead of retire plan. Am I qualified to have 7-13% increment?

  3. Do not really understand this part

    “annual increment of between RM80 and RM320, in addition to another 7%- 13% increment for those who opt to accept the SBPA”

    I understand the 7% – 13%. But the annual increment? Does this mean that there two type of increment?

    And based from your calculation it does seems bad. But me and my wife calculated it and it seems she got a higher increment almost RM200 and mine is only around RM160. Calculation is based on that her salary with 7% increment and mine is 10 percent. (She has higher grade than me)

    The one i really like is there is no more P1, P2 and P3. hahahha. One straight line meaning higher longer yearly increment of salary.

    The thing i am worried about is the exit policy. It could easily be manipulated.

    So Cyril, how many years to 44? hahahaha. Sponsor makan…hahaha 😀

    • There is lack in information on how the increment will be done at the moment. No official announcemnet on who will get the bigger pie, or which grade will enjoy it.

      The increment is basicly a double increment for those taking SBPA. If you take up SBPA, you get another extra increment of 7-13% on top of the mandatory RM80-RM320 you will be getting.

      This means that shall you earn RM1000, you will get (lets say the minimum increment) RM80, so your new pay would be increased by RM80 yearly. Next year you can expect RM1080, in 2013 RM1160.

      However, if you opt for SBPA (retirement at 60), you will get RM80 increment on top of your RM1000 yearly, and an extra 7% (RM70) bringing the total of increment to RM150 yearly, hence you will get RM1150 next year, and RM160 in 2013, bringing your pay to RM1310 in that same year.

      What worries me is that the gov might offer 7% increment to those at the higher grade, and the bigger 13% to those at the lower grade. By the time of retirement, it will basicly see both grades having similar pay, and I feel its rather not fair.

      As for me to go to DG44, I still have 4 more years =P

      • Thanks for the enlightenment. hehehehe. Now i can see where your article is heading. Let’s see when proper documentation come out. We can only hope for the best. 😀

        • I’d prefer a standard increment for all grades, and shall there be some difference, let that be determined by experience, seniority, and academic qualification. No offence to those of lower pay grade in service, but furthering your studies does take up more time and money. =) I really pity those teachers which furthered their studies, only to realize that their pay is equal or almost similar to those that didn’t.

          But like you said, lets hope for the best. I’m merely suggesting or stating my hope for the new scheme =) Regardless of how it goes, I have already benefited since I’m of the younger generation.

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