Budget 2026 Reflects Government’s Commitment to Civil Servants: CUEPACS


Kuala lumpur: The Congress of Unions of Employees in the Public and Civil Services (CUEPACS) has described the MADANI Budget 2026 as a sincere recognition of the crucial role played by civil servants in nation-building. Its president Datuk Dr Adnan Mat said the introduction of the Public Service Remuneration System (SSPA) 2.0, along with new incentives and comprehensive housing initiatives, reflects the government’s appreciation of their service and sacrifices.



According to BERNAMA News Agency, these measures would further motivate civil servants to serve with dedication for the benefit of the people and the country. ‘CUEPACS hopes the implementation of SSPA 2.0 and all related initiatives will be carried out transparently, comprehensively, and without delay so that all levels of the civil service, both federal and state, can benefit promptly,’ Adnan stated.



Adnan mentioned that the announcement of Phase 2 of the SSPA, effective January next year with a financial implication of RM18 billion, demonstrates the government’s commitment to restructuring salary and remuneration schemes that are fair, balanced, and sustainable for all service groups. He also welcomed the RM2.2 billion allocation to build, maintain, and repair government quarters for various public service personnel.



Among the initiatives welcomed by CUEPACS are the up to 120 per cent housing loan guarantee for contract civil servants through the Housing Credit Guarantee Corporation (SJKP), RM500 million in financing from Bank Simpanan Nasional (BSN) for first-home buyers, and the increase in Public Sector Home Financing Board (LPPSA) loan limits to RM1 million. These measures, including the relaxation for a second housing loan, aim to strengthen the wellbeing and stability of young and contract civil servants.



CUEPACS also appreciated the RM500 Special Financial Assistance (BKK) for civil servants in Grade 56 and below, including contract staff, and RM250 for pensioners and veterans, as it reflects the government’s concern over rising living costs. Furthermore, the expansion of the Performance-Based Incentive Assistance (BIBP) to management and professional groups is seen as a positive step for long-serving officers.



Additional support includes an increase in the living allowance for Community Development Department (KEMAS) contract retirees, a payment for Pingat Jasa Malaysia medal holders, and an allowance for Federal Training Award (HLP) Partial Scholarship recipients. Adnan also noted the significance of allowing early withdrawal from the Leave Replacement (GCR) scheme for the haj, demonstrating concern for the spiritual and personal wellbeing of civil servants.



Meanwhile, National Union of the Teaching Profession (NUTP) secretary-general Fouzi Singon expressed appreciation for the government’s decision to review and raise civil servants’ salaries under the SSPA. He stated that this move reflects recognition of the dedication and sacrifices of teachers and other civil servants in the country’s development.