Pension Adjustment
Frequently Asked Questions
Federal Court’s Decision Related to the Pensions Adjustment (Amendment) Act 2013
Pension payments to all pensioners shall be returned to the original pension amount, which is:
- public officers who retired before 2013 – pension payments are returned to the December 2012 amount; and
- public officers who retired from 2013 – pension payments are returned to the original amount upon retirement.
There is no need. The Federal Court has ruled that the government cannot recover the previously paid 2% annual pension adjustment.
PKKP is the Government’s initiative to harmonise the implementation of Federal Court’s decisions while protecting the welfare of pensioners.
PKKP is the payment of the difference between the current pension amount and the original pension amount to provide the pensioners' monthly payments equal to the current pension amount.
For example, if the pensioner's original pension amount in December 2012 was RM1,413.49, while the pension amount in June 2023 is RM1,757.43, the calculation of PKKP is as follows:
Original pension amount + PKKP special assistance = current amount
= RM1,413.49 + RM343.94 = RM1,757.43
Payments will be made between July 2023 and December 2023.
Pension adjustments will be made in accordance with the implementation of the Public Service officers' salary review.
The government is working on a proposal to review the salaries of Public Service officers. However, any consideration of salary revision recommendations is subject to Malaysia’s financial capacity.