Budget 2027 pays RM1,500 for civil servants, RM750 for retirees

The government will pay RM1,500 for civil servants in Grade Utama B and below under Budget 2027. More than one million retirees will get RM750 each.

Prime Minister Anwar Ibrahim announced the payments when he tabled the budget on 9 October. They will come in two instalments.

Here is who qualifies, when the money arrives and what else changes for public servants and pensioners.

Who qualifies and how much

The RM1,500 special aid goes to 1.3 million civil servants in Grade Utama B and below, Business Today reported. It includes staff on contract appointments.

Retirees get RM750 each. More than one million government pensioners qualify, including veterans with and without pensions.

In addition, SpikeToday reported that 70,000 religious workers will also get RM750. They include KAFA and takmir teachers, imams, bilals, tok siak, noja and marbut.

The government has not published the cost of these payments, according to the reports we read. The Vibes used “Premier Grade B” for the grade, while the other outlets wrote Grade Utama B.

The reports do not say how the aid will be paid out. Therefore, civil servants should wait for circulars from their departments. Anyone unsure of their grade should ask their human resources unit.

When the two instalments arrive

Anwar said the payments come in two instalments. The first is before Hari Raya Aidilfitri, and the second is in the lead-up to the 70th anniversary of Merdeka. He called the 70 years of independence a gift to the people, Malay Mail reported.

The Merdeka anniversary falls on 31 August 2027. As of 10 October, no payment dates had been announced, SpikeToday reported. Therefore, the RM1,500 for civil servants has no fixed payday yet.

The speech also does not say how the amounts split between the two instalments. In other words, nobody knows yet whether each payment is RM750.

The Supply Bill 2027 still needs to pass the Dewan Rakyat. Ministers reply to the policy debate from 26 to 29 October. The committee stage then runs from 2 to 26 November, SpikeToday said.

Meanwhile, the government also plans Sara Madani payments, Malay Mail reported. Adults aged 18 and above who do not receive STR get RM100, paid twice.

For how that scheme works, see our SARA guide, our STR guide and our Budget cash aid story.

Other changes for public servants and pensioners

The budget also lifts the minimum pension. The Vibes reported that it rises to RM1,350 a month.

SpikeToday, citing the speech, said it was RM1,000 before the rise. It said nearly 59,000 pensioners, veterans and derivative pension recipients benefit.

Maternity leave across a career rises from 360 to 490 days. The budget also sets aside RM20 million for childcare centres.

Ex-gratia payments to heirs rise from RM20,000 to a maximum of RM50,000, effective 1 January 2026, SpikeToday said.

However, there is no new across-the-board pay rise for civil servants, it added. Its table cites paragraphs 191 to 194 of the speech.

Readers should therefore treat the one-off aid as a payment, not a pay rise. Check the speech or your department circular for the exact terms of the RM1,500 for civil servants.