Minimum monthly pension to rise to RM1,350

The Malaysian government has announced a significant increase to the minimum monthly pension, raising it from RM1,000 to RM1,350. This change affects nearly 59,000 retirees, armed forces veterans, and individuals receiving derivative pensions. Prime Minister Anwar Ibrahim made the announcement while presenting the 2027 budget. Additionally, a special, one-time ex-gratia payment for 12,000 management and professional officers, whose promotions were delayed due to limited positions, will increase from RM20,000 to a maximum of RM50,000, contingent on years of service.

The one-off payment will also see a substantial rise in ex-gratia benefits for next of kin in cases of workplace accidents or disasters from RM20,000 to RM50,000. Furthermore, civil servants can now expect up to 490 days of maternity leave, with up to 98 days allowed per birth. The government will allocate RM20 million to enhance childcare centers at government facilities.

Allowances for volunteers in the People's Volunteer Corps, auxiliary firefighters, police volunteers, and civil defense volunteers will be raised to RM9 an hour for personnel and RM10.80 an hour for supervisors, up from the previous RM8 and RM9.80 respectively. A total of RM339 million has been allocated for these increases, benefiting around 50,000 volunteers.