PUTRAJAYA: The salary increase for civil servants is a step in the right direction but due diligence has to be done to prevent economic issues in the country, say experts.
“Their salaries have been generally low for decades and have not kept up with private sector wages, with some even earning below minimum wage and living below the poverty line. However, he added that a balance had to be struck between the extra RM10bil needed for higher salaries and economic growth to prevent bankrupting the economy.
Economist Dr Carmelo Ferlito agreed, noting that the government should be transparent on the funding for the salary increase. “Not all workers will equally increase their performance or productivity, which could cause some to become complacent.
Source: Financial Digest (financialdigest.net)
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