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Enhancements on the Explanation for the Principles of Granting Allowances

1. What are the enhancements for the explanation for the principles of granting allowances in this Circular compared to the New Remuneration System (SSB) and Malaysian Remuneration System (SSM)?

This circular streamlines the explanation for the four (4) principles on granting allowances, which are Non-Universal, Non-Regular, Non-Permanent, and Fairness, as set out under SSB and SSM. This is to enable officers to understand the bases for consideration used by the Government in reaching a decision concerning the granting of allowances that involves the creation, extension, merger, and abolition of allowances including altering the names, conditions, and rates.

2. Should all the four principles be fulfilled before the Government considers granting a specific allowance?

The principles are used in considering an application to create a new allowance or extend an existing allowance. Each principle explains the basis for consideration or the justification as to why a particular allowance is given to a particular service, group, or grade. For example, in considering the introduction of a new allowance, Public Service Department Malaysia (PSD) may consider creating the new allowance based on one or more of the principles for granting allowances.

3. In addition to the principle of Fairness, what other elements are taken into consideration in considering whether to extend a particular allowance?

The Fairness principle means that an allowance is not limited to any service group, and it can be extended to other eligible officers. Nonetheless, it is not appropriate to use this principle without limitation. Under certain circumstances, this principle should be used wisely and prudently based on the importance of the service.

Further, the determination of other officers’ entitlement is based on additional elements including the criteria of the duties carried out by the officers, as well as extending the allowance will fulfil the specified allowance instrument. For example, an allowance is given based on the criterion of hardship in which the duties cause hardship to the officer and require ongoing effort relative to another officer of the same grade, scheme of service, or service. In this case, if the officer’s duties meet the criteria with the score exceeding the threshold of the allowance instrument score, there is a strong basis to consider paying the allowance to the officer.

Criteria Setting and Types of Allowances

1. When are the allowance criteria used in considering whether to give an allowance?

The allowance criteria are used in considering the application to create a new allowance or extend an existing allowance. Moreover, the allowance criteria are used in review studies on the conditions and rates of allowances and in studies on strengthening and updating the existing allowances to ensure that the allowances are still relevant and suitable with the current needs besides being able to increase officers’ productivity and performance.

2. Why should the existing criteria and types of allowances be streamlined?

Before this Circular becomes effective, certain criteria overlapped each other and some criteria were not consistent with the true intention of giving a particular allowance. Thus, these criteria were realigned to standardise the bases for giving allowances and to enable the types of allowances to be set as follows:

Fixed Allowance or Fixed Compensation are two (2) types of allowances that are given based on the cost of living;
Allowance or Repayment are two (2) types of allowances that are given based on additional responsibilities and repayment of expenses; and
Incentive Payment is a type of allowance that is given based on seven (7) criteria, i.e., job risk, hardship, expertise, additional skills or competencies, peculiar or objectionable tasks, the importance of maintaining a particular service, and motivation.

Abolition of Allowance

1. What action should be taken if an officer is still carrying out Special for Incumbent (KUP) duties and is paid allowances that have been abolished by this Circular?

Please contact the Remuneration Division, Public Service Department Malaysia if some officers are still carrying out Special for Incumbent (KUP) duties and are paid the allowances that have been abolished by this Circular.

Critical Service Incentive Payment

1. Will the Critical Service Incentive Payment (GPA) be abolished?

In accordance with the implementation of the Public Service Department Distributed Letter (SE JPA) reference: JPA.SARAAN(S)63/158 Jld.15 (16) dated 9 January 2020, the Government has agreed to maintain the BIPK payment until a review is carried out with the parties involved. Based on this decision, the BIPK payment for new appointments effective from 1 January 2020 for the 33 schemes of service provided with BIPK is maintained.

2. Does the implementation of SE JPA reference: JPA.SARAAN(S)63/158 Jld.15 (16) dated 9 January 2020 also has an implication on the implementation of this Service Circular?

Service Circular Number 10 Year 2019 is still in force effective from 1 January 2020. The implementation of SE JPA reference: JPA.SARAAN(S)63/158 Jld.15 (16) dated 9 January 2020 is aimed at maintaining the BIPK payment for new appointments for the 33 schemes of service provided with BIPK.

Amendment to the Names of Allowances

1. What is the reason for amending the names of allowances?

The names of allowances have been amended to suit the criteria and types of the allowances. In addition, the amendment is to ensure that the names of allowances provide a clearer depiction of the functions of the allowances involved and are specific to the services, groups or grades that receive the allowances.

Merger of Allowances

1. What is the reason for merging the allowances?

Allowances that have similar features including the basis for granting the allowances, the scope of duties that entitle the allowances to be given, and the same specific conditions and/or rates are merged to reduce the number of allowances in force in order to streamline the supervision of Public Service allowances at Central Agency and Departmental levels.

Standardisation of the General Conditions for Entitlement

1. What is the reason for standardising the general conditions for granting allowances?

The general conditions are applicable to the 91 existing allowances and are standardised under one source of power, i.e., this Circular, to facilitate reference to the application of the general conditions for the entitlement to allowances.

2. There is confusion regarding the cessation of allowance payments based on the condition for the Annual Leave period or other leaves in which the duration exceeds 28 consecutive days as to whether the allowance payment will stop on the 28th day or the 29th day.

The allowance will cease on the 29th day of leave, and the cessation of allowance payment must be made from the first day of that leave period.

Application of Circular No. PP 10/2019

1. Can Statutory Authorities amend/adopt only some parts of this Service Circular?

No. All the related agencies must adopt the entire Service Circular No. 10/2019.

Fixed Housing Allowance for Federal Public Service

1. The increase in Fixed Housing Allowance (ITP) based on Service Circular No. 8 Year 2015 (PP8/2015) involves Grades 41/42 and lower only. Is the 25% ITP granted to officers who are allocated with quarters also involve Grades 41/42 and below only?

The ITP granted to officers living in quarters at a rate of 25% of the officers’ ITP as stipulated in PP8/2015 is applicable to all Federal Public Service officers in the Executing Group (Grades 11 to 40), Managerial and Professional Group (Grades 41 to 54), and Top Management Group (JUSA to TURUS).

2. Are the regionally relocated officers who reside in quarters also entitled to the 25% ITP payment?

The provision of 25% ITP is also applicable to all officers in the Executing Group (Grades 11 to 40), Managerial and Professional Group (Grades 41 to 54), and Top Management Group (JUSA to TURUS) who have relocated to another region and reside in quarters, based on item 5 PP8/2015. The Government has decided that all public servants living in quarters are entitled to ITP at 25% of the officers’ ITP entitlement. This includes regionally relocated officers.

3. In the case of regionally relocated officers who previously chose the Regional Housing Allowance (EPW) due to its higher rate, are they allowed to switch to ITP?

Item 6.2, Service Circular No. 11 Year 2001 (PP11/2001) states that officers not residing in government quarters may choose either ITP or EPW. For regionally relocated officers, the option to accept either ITP or EPW is given only when the officers relocate to another region. However, based on PP11/2001, the ITP rate is used if the EPW rate is lower.

4. Two officers, who are husband and wife from Peninsular Malaysia, have been assigned to work in Sabah. However, the husband is stationed in Sandakan and the wife in Kota Kinabalu, and both officers are allocated with quarters (Pool Government Quarters) at their respective locations. Are the officers entitled to be paid the 25% ITP?

Based on item 7, PP8/2005, officers allocated with quarters are entitled to the ITP payment at the rate of 25% of the officers’ ITP entitlement. In this case, both officers are entitled to the ITP payment at the rate of 25% of the officers’ respective ITP entitlements.

5. Two officers, who are husband and wife from Peninsular Malaysia, have been assigned to work in Sabah. However, the husband is stationed in Sandakan and the wife in Kota Kinabalu. Only one of them is allocated with quarters (Pool Government Quarters). Are the officers entitled to be paid the 25% ITP?

Based on item 7, PP8/2005, officers allocated with quarters are entitled to the ITP payment at the rate of 25% of the officers’ ITP entitlement. Meanwhile, based on item 8, PP8/2015, officers not allocated with quarters are entitled to the ITP or EPW payment in accordance with item 6.2 PP11/2001.

6. An officer resides in a hostel and the ITP and Cost of Living Assistance (BSH) (50%) has been deducted. Is the officer entitled to be paid the 25% ITP as per PP8/2015?

An officer who is provided with accommodation/hostel that is deemed as quarters (ITP not paid) and resides there full time is entitled to ITP at the rate of 25% of the officer’s ITP.

7. Is an officer residing in the Department/Post Special Quarters entitled to be paid the 25% ITP?

An officer residing in the Department/Post Special Quarters is not entitled to the 25% ITP in accordance with item 6 PP8/2015.

8. For officers currently receiving the Special Housing Payment (BPK), will the rate be adjusted in accordance with PP8/2015?

Officers occupying Department Special Quarters also enjoy the new ITP rate under PP8/2015 based on their respective levels. However, the percentage of BPK from the ITP rate remains the same, as set out in item 3, Service Circular No. 11 Year 2002 (PP11/2002).

9. What is the ITP rate for an officer who is on Unpaid Leave?

An officer who is on unpaid leave is not entitled to be paid the ITP throughout the unpaid leave period, in accordance with item 5.3(a), Service Circular Letter No. 4 Year 2009 (SPP4/2009).

10. What is the ITP rate for an officer who is on Full-Pay Leave (CBBP?

An officer who is on CBBP is entitled to be paid ITP at the full rate, in accordance with item 5.1(b), SPP4/2009.

11. Does PP8/2015 apply to officers who are under temporary appointment, Contract of Service and Contract for Service?

All officers whether permanent, temporary or under a Contract of Service are subject to PP8/2015, except for officers appointed under the Contract for Service.

The terms and conditions of service and the total income of Contract for Service officers are different from public officers and are not subject to or administered according to PP8/2015.

12. Is PP8/2015 applicable to officers who remain under the New Remuneration System and the Cabinet Committee 1976 (JKK 1976) Scheme of Service?

PP8/2015 applies to all Federal Public Service officers including those who remain under the SSB and JKK 1976 Scheme of Service.

13. Are the officers serving abroad and residing in quarters rented by the department or quarters provided by the department entitled to ITP at the rate of 25%?

A Federal Public Officer who is serving abroad and provided with quarters by the Department is entitled to be paid ITP at the rate of 25% of the officer’s ITP entitlement based on the officer’s grade, in line with item 5, PP8/2015.

14. References:

Service Circular No. 8 Year 2015
Service Circular No. 11 Year 2001
Service Circular No. 11 Year 2002
Service Circular Letter No. 4 Year 2009

Overtime Work Allowance

1. What is meant by overtime work?

Overtime work is the official/substantive work of an officer or Department that is performed at the instruction by the Head of Department outside the specified regular office hours on a Weekly Rest Day, Weekly Holiday, or Public Holiday. [General Order 11 Chapter G (Leave) and item 1.2 Service Circular Letter No. 1 Year 1980).

2. Who are entitled to be paid the Overtime Allowance?

All officers in the Support Group are entitled to be paid the Overtime Allowance except the officers in the Malaysian Royal Police, Malaysian Armed Forces, Prison Department, Fire and Rescue Department, and Maritime Enforcement Agency of Malaysia. [Service Circular No. 9 Year 1991 (PP9/1991), Item 24 Appendix D6].

3. Can an officer who is entitled to Overtime Allowance choose to convert it to Replacement Leave?

Yes. An officer who is entitled to Overtime Allowance may choose between Overtime Allowance and Replacement Leave. Officers who opt for Replacement leave need to accumulate 9 working hours to be entitled to 1 day of Replacement Leave. (General Order 40 Chapter C and JPA Distributed Letter dated 11 August 2010).

4. Can an officer who works overtime outside the head quarters’ territory claim for Overtime Allowance and Official Duties Outside the Head Quarters Allowance?

Yes. Officers who are instructed to work overtime outside the headquarters’ territory are entitled to claim Overtime Allowance and official duty allowances such as Meal Allowance, Hotel Rental Payment, and Vehicle Travel Allowance subject to the rules set out in WP 1.4/2013. (JPA Distributed Letter dated 15 November 2001).

5. Can the officers participating in a course/seminar/workshop held outside working hours be paid Overtime Allowance?

No. Officers participating in a course/seminar/workshop are not entitled to Overtime Allowance or Replacement Leave except for the officers carrying out the secretariat duties to manage the course/seminar/workshop.

6. What are the work requirements that would enable a person to claim the Overtime Allowance?

The types of overtime work cover all types of duties such as counter service, processing, supervision and surveillance, subject to the following work requirements:

Emergency work
Important work that cannot be postponed to the next day because such delay could be detrimental to the service;
The work an employee is required to perform is beyond his/her regular job scope; and
Work that needs to be accomplished within a limited period of time.

[PP9/1991, Item 24 Appendix D6 and JPA Distributed Letter dated 11 August 2010)

7. Are the officers instructed to work overtime on a Public Holiday / Weekly Rest Day / Weekly Holiday entitled to claim for the travelling cost from home to the office?

Yes. Officers are entitled to make a travel claim if they are instructed in writing by the Head of Department to go to the office or any other place to carry out official duties after the regular working hours or on a Weekly Rest Day / Weekly Holiday / Public Holiday (Item 13, Treasury Circular WP1.4)

8. Are a driver and another officer working outside the Head Quarters’ territory entitled to claim Overtime Allowance for the travelling time?

A driver who is instructed to work overtime outside the Head Quarters’ territory is entitled to claim Overtime Allowance including the travelling time because driving is the substantive duty of a driver.

For officers other than drivers, the travelling time can be included as overtime work if the work duration outside the Head Quarters’ territory is less than 24 hours. If the duration exceeds 24 hours, officers are not entitled to be paid Overtime Allowance for the travelling time. (JPA Distributed Letter dated 15 November 2001).

9. An officer who is on annual leave is called back to work. Is the officer entitled to claim Overtime Allowance?

An officer who is on annual leave is not entitled to claim Overtime Allowance for the days the officer is called back to work. Instead, the officer should cancel/shorten the annual leave for the days the officer is called back to work. The officer is allowed to make an Overtime Allowance Claim if the officer performs overtime work based on the rules currently in force. [General Order 11 Chapter G, PP9/1991, Item 24 Appendix D6 and JPA Distributed Letter dated 11 August 2010).

10. Can an officer who is on shift work claim the Overtime Allowance if the officer is scheduled to work on a Public Holiday?

i. For officers on shift or rotation work, the Overtime Allowance shall be based on the stipulated work schedule. If an officer’s regular workday shift is from Tuesday to Sunday, then Overtime Allowance at the regular workday rate shall be paid for the overtime work performed from Tuesday to Sunday. If the officer’s Weekly Holiday is on Monday, then Overtime Allowance at the regular rest day rate shall be paid for the overtime work performed on Monday

Regional Relocation Allowance

1. What types of allowances and benefits are given to regionally relocated officers?

Regionally relocated Public Service officers are entitled to the following allowances and benefits:

Regional Incentive Payment
Regional Housing Allowance
Disturbance Allowance
Fare to Travel to the Region of Origin
Courtesy Fare
Free Passage for the Officer’s Funeral for family members of regionally relocated officers.

2. What is meant by regional relocation?

A regionally relocated officer is an officer working in another region other than his/her region of origin. In this context, region means Peninsular Malaysia, Sabah, Sarawak, and Labuan. An officer’s region of origin is based on the birth region of the officer’s mother or father. For cases where an officer’s parents were born in different regions, the officer may choose either the mother’s birth region or the father’s birth region as the officer’s region of origin.

3. An officer who was born in Peninsular Malaysia is currently working in Peninsular Malaysia. Can the officer declare Sabah as his/her region of origin because the officer’s mother was born in Sabah whereas his/her father was born in Peninsular Malaysia?

Yes. The officer may declare Sabah as his/her region of origin as the rule allows the officer to choose either the mother’s or the father’s region of origin as his/her region of origin.

4. Will a regionally relocated officer be paid the Regional Housing Allowance (EPW), or can the officer opt for the Fixed Housing Allowance (ITP)?

A regionally relocated officer may choose to accept either the Regional Housing Allowance (EPW) or the Fixed Housing Allowance (ITP) using the JPA Form (EPW) in Service Circular No. 11 Year 2001. The form should be submitted to the Head of Department.

5. When is an officer entitled to the Regional Housing Allowance (EPW)?

An officer is entitled to the Regional Housing Allowance effective from the date the officer reports for duty in the placement region.

6. What is meant by Courtesy Fare?

Courtesy Fare is given to regionally relocated Public Service Officers. This benefit is provided from the place where the officer serves to the capital of the officer’s region of origin for one of two purposes, i.e., visiting critically ill or demised mother, father, mother-in-law, or father-in-law.

7. What is meant by Disturbance Allowance?

Disturbance Allowance is a payment made to a regionally relocated officer when the officer is transferred back to his/her region of origin. The Disturbance Allowance is paid at the rate of the officer’s one-month basic salary. If necessary, the Disturbance Allowance is paid in advance at half of the officer’s salary at that time. The balance will be paid based on the last-drawn salary received by officer before moving back to his/her region of origin. In the case where two officers (husband and wife) are transferred back to their region of origin, only one of them is entitled to the Disturbance Allowance based on whose salary is the higher.

8. Regarding the family members of a regionally relocated officer, who will be entitled to the Free Passage for Officer’s Funeral?

The Free Passage for Officer’s Funeral benefit is granted to the family members of a regionally relocated officer to accompany the deceased officer’s remains from the serving region to the burial site.

Family means the officer’s family comprising the officer’s wife/husband and children under 21 years old who are dependants of the officer except incapacitated children due to mental or physical disability.

9. References:

Service Circular Number 1 Year 2012
Service Circular Number 22 Year 2008
Service Circular Number 4 Year 2002
Service Circular Number 11 Year 2011
Service Circular Number 4 Year 1988
Service Circular Number 5 Year 1978

Out of Station Treatment

1. Who are entitled to out of station treatment?

General Order 3, General Orders Chapter F (Medical) Year 1974 stipulates that Public Service officers and their family members must seek treatment in Government hospitals or clinics near their stations. In the case where a local medical officer confirms that an officer or his/her family member requires treatment from medical officers elsewhere, the officer or his/her family member may claim such allowances as stated in General Orders Chapter B (Allowances in Service) Year 1974 as if the officer or his/her family member is travelling out of the station for official purposes.

2. What are the allowances that can be given to an officer who has been referred to seek medical treatment out of the station where the officer is serving?

General Order 42 (a), General Orders Chapter B (Allowances in Public Service) Year 1974 stipulates that when a medical officer confirmed that an officer or his/her family member requires treatment or medical advice that could not be obtained at the place where he/she works, and he/she or his/her family member is not required to stay in the hospital, then the officer may claim all the allowances he/she is entitled to in this chapter, including hotel or lodging rental, as if he/she were on an official trip because the purpose of the trip is to seek treatment for him/herself or his/her family member.

3. If an officer seeks treatment out of the station without obtaining confirmation from a local medical officer, is the officer entitled to claim the allowances?

In the case where an officer him/herself wants to seek treatment from a medical officer at another place without the advice of a local medical officer, the allowances cannot be claimed [General Order 3, General Orders Chapter F (Medical) Year 1974].

4. What is meant by “an officer’s family”?

General Order 1 (iii), General Orders Chapter F (Medical) Year 1974 interprets “an officer’s family” for a male officer as his wife and children, and for a female officer as her husband and children. Children who are entitled to the benefit are children who are full dependants on the officer and are below 18 years old or if they are still in school, under the age of 21. However, these age limits are not applicable to incapacitated children due to mental or physical disability. The term “child” includes a stepson/stepdaughter and a legally adopted child.

5. If an officer accompanies his/her parent to seek treatment out of the station (with certification by a local medical officer), is the officer entitled to claim for the allowances?

No. An officer’s legal parents are allowed to seek medical treatment as provided in General Order Chapter F (Medical) Year 1974 and Service Circular No. 21 Year 2009 only.

6. If a local medical officer certifies that the officer or his/her family member who is sick needs to be accompanied, what are the companion’s allowance entitlements?

Item 15, Appendix D7, Service Circular No. 9 Year 1991 allows one companion if certified by a local medical officer. The companion is entitled to official duty allowances, as if he/she were carrying out official duties while accompanying the patient, for not more than five (5) days based on the officer’s entitlement.

7. What is the Meal Allowance rate for spouse that can be claimed by an officer?

General Order 42 (b), General Orders Chapter B (Allowances in Public Service) Year 1974 stipulates that the Meal Allowance rate that may be claimed for the wife or husband of an officer who requires treatment should be equal to the officer’s entitlement rate.

8. In the case where both husband and wife are Public Service officers, can the claim be made by both of them?

In the case where both husband and wife are Public Service officers, the claim should be made by either one of them (husband or wife only), regardless of whether the claimant is a patient or a companion.

9. If an officer is required to accompany his/her family member to seek treatment out of the station, can the officer apply for Unrecorded Leave for that purpose?

An officer accompanying a family member to seek medical treatment out of the station must use the Annual Leave or Half-Pay Leave or other types of leave to which the officer is entitled.

Claim for Transfer/Relocation Arising from Own Application

1. Is an officer who has been approved for a transfer arising from own application entitled to make transfer claims?

Yes. An officer who has been approved by the Head of Department for a transfer on his/her own application is entitled for relocation and transfer payments provided that the relocation and transfer fulfil one of the following conditions:

At least 5 years of service at the station or 3 years in a difficult to live area; or
To follow a spouse who has been transferred earlier provided that the officer has served more than one year in his/her last office; or
For health reasons for the officer or his/her family (husband/wife/children), and it must be confirmed by a Government Medical Officer; or
To take care of a sick parent who requires intensive care, and it must be confirmed by a Government Medical Officer; or
For reasons of incompatibility of placement based on scientific expertise or awkward circumstances that could be detrimental to the officer.

2. Can an officer opting for early retirement claim for transfer payments after retiring?

Yes. Officers taking the optional retirement may be paid transfer claims to any place in Malaysia selected by the officer.

3. References

Service Circular No. 4 Year 1995.
PSD Distributed Letter JPA.BK(S)63/163/(30) dated 23 August 1994.
PSD Distributed Letter JPA.BK(S)63/163/(40) dated 10 November 1994.

Office Secretary / Assistant Secretary (SP/PSP) Allowance

1. An Office Secretary / Assistant Secretary (SP/PSP) who receives the PA Allowance as the Special Assistant to a PA-approved officer is on Maternity Leave. Can the allowance be paid during the Maternity Leave period?

No. Based on current rules, a SP/PSP receiving the Special Assistant Allowance who is on Maternity Leave will not receive the allowance during his/her Maternity Leave period. However, the allowance payment will resume once the officer returns to his/her duty as a Special Assistant to an officer allocated with that Special Assistant.

2. A PSP/SP has been asked by his/her Head of Department to be a temporary PA to a Head of Department because the existing PA is on maternity leave. In this situation, can the PSP/SP be paid the PA Allowance during the temporary replacement period?

Yes. A PSP/SP instructed by the Head of Department to be a temporary PA to an officer allocated with a Special Assistant because the current PA is on Maternity Leave is entitled to the Special Assistant Allowance for the duration the PSP/SP is carrying out the Special Assistant duties.

3. A PSP/SP (Grade N17) has been assigned by his/her Head of Department to be a Personal Assistant to a Premier Grade C Officer. In this case, what is the rate that can be paid to the Grade N17 PSP/SP? Is it RM75.00 or RM100.00, i.e., the rate for the Grade N22 post?

A PSP/SP (Grade N17) who has been assigned as the Special Assistant to a Premier Grade C officer is entitled to a Special Assistant Allowance of RM150.00 per month because the Special Assistant Allowance is given based on the grade of the officer allocated with a Special Assistant rather than the grade of the PSP/SP that becomes the Special Assistant. However, payment of this allowance is subject to prior approval from the Department.

4. A PSP/SP (Grade N17) has been administratively assigned by his/her Department as a Personal Assistant to a Grade M48 officer. The PSDP/SP applied for the PA allowance. In this situation, can the Department pay the allowance to the PSP/SP?

No. A PSP/SP, administratively assigned as the Special Assistant to a Grade M48 officer, is not entitled to the Special Assistant Allowance because this allowance can only be paid when there is a PSP/SP post allocated to the Grade M48 officer.

5. A Head of Department that has been approved to have a Special Assistant has been transferred to another department due to promotion. After a few months, the post vacated by him/her has not been replaced or filled up. In this situation, what is the position of the Special Assistant Allowance received by the PSP/SP who was a PA to the officer?

If the PSP/SP is carrying out the duties of a Special Assistant to the officer covering the duties of the Supervising Officer who has been transferred, the PSP/SP is entitled to the Special Assistant Allowance according to the rate stated in PP1/2010.

6. A Grade N17 SP has been assigned to work at the Office of a Deputy Minister, and the SP works directly with the Deputy Minister in all administrative affairs at the Deputy Minister’s Office. The PSDP/SP has applied for the Special Assistance Allowance. In this situation, is the PSP/SP entitled to the allowance?

No. The Special Assistant to a Deputy Minister is the Confidential Secretary. A PSP/SP assigned to work at the Deputy Minister’s Office is not designated to any officer and is not responsible to carry out the duties of a Special Assistant to any officer. Therefore, the PSP/SP is not entitled to the Special Assistant Allowance. Since the PSP/SP’s placement at the Deputy Minister’s Office is also administrative in nature, the PSP/SP is not entitled to the Special Assistant Allowance.

The ministry’s Human Resources Office is advised to comply with the provisions and rules laid down in the circulars related to the placement of Special Assistants (PP27/2009 and PP1/2010) to avoid any confusion among officers and staff.

7. References

Service Circular No. 1 Year 2010

Cost of Living Assistance (COLA)

1. Are the officers who have been approved for Half-Pay Leave (CBSG) entitled to COLA?

Yes. Officers who have been approved for CBSG in Malaysia are entitled to COLA one calendar month after the CBSG date at half of the rate based on the rate of the area of the institution.

2. Regarding the officers allocated with Post/Department Special Quarters (within 25 km from the office) who receive the Special Housing Payment, are they entitled to COLA at half the rate? Officers allocated with Post/Department Special

Officers allocated with Post/Department Special Quarters who receive the Special Housing Payment are also entitled to COLA at half of the rate (50%) received by officers not allocated with the Government Quarters.

3. References:

Service Circular No. 28 Year 2005
Service Circular No.7 Year 2006
Service Circular No.6 Year 2007
JPA (BGE)(S)63/145/1-2(47) dated 19 December 2008
JPA (BGE)(S)63/145/1-2(48) dated 19 December 2008
JPA (S)63/57/2 KH.8(97) dated 8 February 2010
Service Circular No. 3 Year 2012

Increase in Cost of Living Assistance (COLA)

1. How it the payment of COLA to Federal Public Service officers implemented?

COLA is paid according to the workplace (office) based on the establishment warrant approved by the Ministry of Finance Malaysia. COLA rates vary by area and Service Group as per Schedule 1, Service Circular Number 7 Year 2019.

2. Is an officer who has been approved for study leave / long-term course in Malaysia entitled to COLA?

The officer is entitled to COLA according to the workplace (office) based on the establishment warrant where the officer is placed.

3. Is an officer who has been approved for study leave / medium-term course / short-term course (whether in the country or abroad) entitled to COLA?

The officer is entitled to COLA according to the workplace (office) based on the establishment warrant where the officer is placed.

4. Are the officers allocated with Government Quarters entitled to receive COLA?

Officers who are entitled to receive COLA are as follows:

Government Quarters within 25 km radius from the workplace (office) - paid the rate of half of the officer’s entitlement; or
Government Housing beyond 25 km radius from the workplace (office) - paid at the full rate.

5. How is the distance of 25 km determined?

The distance of 25 km refers to the distance on a straight line (radius) on the map because this distance is fixed and not affected by new road constructions.

6. How to determine the COLA rate for an officer placed administratively at a particular office?

COLA payments are made based on an officer’s workplace or learning institution (for an officer who has been approved for study leave in the country). An officer’s workplace (office) is as per to the establishment warrant approved by the Ministry of Finance Malaysia.

Store Management Duty Incentive Payment (BITPS)

1. An officer holding the post of Junior Storekeeper (Grade N11) works full-time in store management in a department. Is the officer entitled to BITPS?

No. According to the provision in item 3, Service Circular Number 8 Year 1999, the Store Management Duty Incentive Payment is specifically paid to the PT(P/O) carrying out the store management duties full-time. Currently, this incentive is not extended to other services. Therefore, the Grade N11 Junior Storekeeper is not entitled to BITPS even though he/she is carrying out the management duties on a full-time basis.

2. What is the position of the BITPS received by this officer? Can the payment continue to be paid or should it be ceased?

According to item 8, Service Circular Number 8 Year 1999, an officer who receives the BITPS but has left his/her duties for 28 days or more consecutively will not receive the BITPS payment for that period. However, exceptions are given to officers who leave their duties for a period not exceeding 92 consecutive days including weekly rest days and public holidays under the following circumstances:

Attending a course at the instruction of the Head of Department
Carrying out official duties at the instruction of the Head of Department; and
On a medical leave that is supported by a Medical Certificate in accordance with P.A Chapter C.

3. A Grade N17 Administration Assistant (P/O) has been instructed to cover the duties and carry out the store management duties because the incumbent is on a 3-month medical leave. In this situation, is

No. According to the provision in item 3, Service Circular Number 8 Year 1999, the Store Management Duty Incentive Payment is specifically paid to the PT(P/O) carrying out the store management duties full-time. Since the officer has been instructed to cover the store management duties, it means that the officer is also carrying out his/her existing substantive duties. In this case, the officer is not entitled to receive the BITPS as the duties carried out cannot be defined as full-time store management duties.

4. An officer has been appointed as a part-time PT(P/O) at a Government Department. The officer has been assigned to carry out the store management duties on a full-time basis. In this situation, is the officer entitled to BITPS?

No. According to the provision in paragraph 5, Service Circular Number 8 Year 1999, only an Administration Assistant (P/O) appointed on a contract and temporary basis and carrying out the Store Management duties on a full-time basis is entitled to receive the BITPS. Therefore, a part-time officer is not entitled to BITPS even though his/her entire duties are in store management.

5. When is the effective date to increase the BITPS payment from RM40.00 to RM80.00 after an officer has passed the examination? Is it based on the date of the examination or the date the examination result is released?

According to the rules currently in force, the BITPS payment for an officer who has passed the BITPS examination will be increased from RM40.00 to RM80.00 in the month following the month the examination result is released. For example, if the examination result was released on 3 January or 28 January 2006, the officer shall receive the new BITPS rate effective from 1 February 2006.

6. An Administration Assistant (P/O) has been directed by his/her Head of Department to carry out financial duties and store management duties on a full-time basis due to staff shortage. In this instance, can the officer be paid both BITK and BITPS as both duties are his/her full-time duties?

No. According to the rules currently in force, an officer who has been directed by the Head of Department to carry out financial duties and store management duties on a full-time basis due to staff shortage is not entitled to either incentive because the officer has not fulfilled the condition of working on a full-time basis for either task. The officer must carry out the duties on a full-time basis to be eligible for the allowance.

7. Reference:

Service Circular Number 8 Year 1999

Regional Housing Allowance (EPW)

1. What is meant by “a regionally relocated officer” and what is the definition of “region of origin”?

According to Service Circular Number 11 Year 2001, a regionally relocated officer is an officer originating from Sabah or Sarawak working in Peninsular Malaysia or an officer originating from Peninsular Malaysia working in Sabah or Sarawak. Further, Service Circular Number 29 Year 2005 states that the Government has agreed to define Labuan as a separate territory from Sabah. “Region of origin” refers to the birth region of an officer’s mother or father, as stated in this Department’s Distributed Letter no. JPA(S) 63/75/2/(SV61) dated 12 October 2000.

2. Can EPW be paid to an officer working Sabah even though he and his parents were born in Sabah?

No. In this case, the officer is not entitled to receive the EPW as he/she does not meet the criterion of “originating from” as stated in Service Circular Number 22 Year 2008.

3. Can EPW be paid to an officer working in Peninsular Malaysia if the officer’s father originated from Sarawak and the officer (and his/her mother) originated from Peninsular Malaysia?

In this case, the officer must first declare his/her region of origin, which shall be recorded in the officer’s service book. For the case where an officer’s parents were born in different regions, the officer must select between the mother’s birth region and the father’s birth region, subject to one selection throughout his/her service period.

4. Would an officer be entitled to EPW if the officer lives in a house bought by his/her spouse using a Government housing loan?

Yes. According to this Department’s Distributed Letter no. JPA(S) 63/151, Klt. 23 (8) dated 14 July 2009, the Government has agreed for an amendment to allow an officer residing in a house bought by his/her spouse using a Government housing loan, located within the station where the officer serves, to receive the EPW.

5. Is EPW paid according to the date an officer reports for duty at the placement region or does the officer have to submit the application first?

According to Service Circular Number 11 Year 2001, EPW is paid to an officer effective from the date the officer reports for duty in the new region.

6. If an officer took a commercial loan to buy a house near his/her office, would the officer be entitled to the EPW?

No. Paragraph 6.7, PP11/2001 explains that an officer provided with a Government Housing Loan Scheme is not entitled to EPW.

7. An officer intends to switch from EPW to Fixed Housing Allowance (ITP) because the ITP rate is higher than the EPW rate. Is the officer entitled to the ITP allowance?

No. An officer who has opted for EPW is not entitled to switch to ITP during the regional relocation period. However, the officer is allowed to make a new selection if he/she is relocated to a new region except for a relocation to the officer’s region of origin.

8. Reference:

Service Circular Number 11 Year 2011
Service Circular Number 22 Year 2008
Distributed Letter JPA(S) 63/151, Klt. 23 (8) dated 14 July 2009
Distributed Letter JPA(S) 63/75/2/(SV61) dated 12 October 2000

Disturbance Allowance

Regional Relocation due to Own Application

1. An officer applied for regional relocation to follow her husband who has been regionally relocated.

BIW is paid to a public service officer who is relocating to another region (for work purposes). Officers considered as relocating their region of work are as follows:

Officers originated from Sabah and Sarawak and appointed and/or stationed in Peninsular Malaysia;
Officers originated from Peninsular Malaysia and appointed and/or stationed in Sabah and Sarawak; or
Officers originated from Sabah or Sarawak that are stationed within the two states.

2. A regionally relocated officer has applied to move back to his/her region of origin after working in a remote area for more than 7 years.

Yes. The allowance will be declined for an officer that is undergoing training courses for more than three (3) months regardless of it being held locally or overseas.

3. An officer originates from Labuan and was ordered to move to Sarawak. While serving in Sarawak, the officer applied for Study Leave and returned to his/her region of origin to further his/her studies.

No. An officer who is a BIW recipient is not entitled to receive COLA. This is mentioned in paragraph 4, Circular Service No. 28 of 2005.

Retirement in the Service Region

4. An officer who originates from Sabah has been ordered to serve in Peninsular Malaysia until the date of his/her retirement. The officer plans to return to his/her region of origin upon retirement.

No. When necessary, Disturbance Allowance amounting to half of the officer’s salary can be paid in advance when he/she is instructed to relocate to Peninsular Malaysia. The remaining balance shall be paid before the officer returns back to his/her original region.

Husband and Wife Relocating to the Same Region

5. Two officers (husband and wife) who originate from Sarawak had regionally relocated to Peninsular Malaysia. The wife claimed for the Disturbance Allowance at half of the rate as an advance. However, the wife died in Peninsular Malaysia and the husband relocated back to his region of origin.

6. Two officers (husband and wife) who originate from Peninsular Malaysia had regionally relocated to Sabah. Subsequently, they divorced, and the husband relocated back to his region of origin.

No. If there is a situation where an officer is not paid Disturbance Allowance during or after he/she relocates back to his/her original region, the allowance shall be paid in accordance with the current date and could not be backdated to the date of relocation.

7. Two officers (husband and wife) who originate from Peninsular Malaysia had regionally relocated to Sarawak in 2010. The wife was ordered to return to their region of origin in 2014, and the husband relocated back to their region of origin in 2017.

Disturbance Allowance is under the responsibility of the officer’s last office before he/she relocates back to his/her original region. Disturbance Allowance shall be paid by the department before the officer relocates and the amount is based on the officer’s salary at the time of relocation.

8. A regionally relocated officer got married while working in the serving region to another regionally relocated officer who came from the same region, and then the officer was ordered to relocate back to his/her region of origin.

An officer that is undergoing training (including study leave) for more than three (3) months is not eligible to receive BIW. However, he/she will be given COLA based on the principle to overcome the increase in cost of living. This is underlined in the Study Leave for Public Service Officers Undergoing Medium-Term or Long-Term Courses (Full Time) Guideline governed by the Human Capital Development Division, PSD.

As stated in Service Circular No. 3 of 2012, COLA is paid in accordance to the location of the officer’s learning institution.

On the other hand, Regional Housing Allowance (EPW) will not be paid to an officer that is undergoing training for more than three (3) month. However, the officer will be given Fixed Housing Allowance (ITP). This is also underlined in the Study Leave for Public Service Officers Undergoing Medium-Term or Long-Term Courses (Full Time) Guideline governed by the Human Capital Development Division, PSD

As stated in Service Circular No. 3 of 2012, COLA is paid in accordance to the location of the officer’s learning institution.

5. The Regional Incentive Payment (BIW) is usually paid to officers serving in a region other than their region of origin. What is the justification for giving BIW to a Lecturer originating from Sarawak who serves at UNIMAS (Sarawak)?

BIW is paid to:

Officers originated from Sabah and Sarawak and appointed and/or stationed in Peninsular Malaysia;
Officers originated from Peninsular Malaysia and appointed and/or stationed in Sabah and Sarawak; or
Officers originated from Sabah or Sarawak that are stationed within the two states.

BIW is paid according to a certain percentage determined by an officer’s salary band (refer to Appendix I, Service Circular No. 1 Year 2012). Furthermore, paragraph 4(d) Service Circular No. 3 of 2012 states that an officer receiving Regional Incentive Allowance (BIW) is not entitled for COLA. An officer residing in a government quarters will be paid the BIW.

6. Are officers (husband and wife) entitled to receive the Regional Housing Allowance in a situation where the husband serves in Sarawak and the wife serves in Sabah?

According to paragraph 6.5, Service Circular No. 11 of 2001 (PP11/2001), officers that are husband and wife who are relocating their work to another region and do not occupy government quarters can each be awarded Fixed Housing Allowance (ITP). One of the spouses can decide to choose Regional Housing Allowance (EPW). The explanation for para 6.5 PP 11/2001 is as follows:

Husband and wife (officers) that are relocated in the same region and do not reside in government quarters can each be paid a Fixed Housing Allowance (ITP). However, one of them is entitled to choose the Regional Housing Allowance (EPW); and
Husband and wife (officers) who are relocated to different regions and do not reside in government quarters are both entitled to be paid EPW.

Thus, the award of EPW is determined in accordance to paragraph 6.5 PP 11/2001 and the above explanation for paragraph (b) as both husband and wife (originated from Peninsular Malaysia) is relocated to different regions.