The Malaysia government will reconsider the implementation of 2-cycle salary payment for the civil servants and may call off the plan if it causes problem to the employees.

Last week the Human Resource Minister Datuk Dr S. Subramaniam announced that the salary for the government workers will be paid twice per month - the first week and the final week of the month. According to him, the implementation will begin in August 2008.

In a turn of event, Subramaniam yesterday told the press that the government will reassess and evaluate the situation and make a formal announcement soon on the matter.

The move was said to accommodate the public servants managing their finance better, as as many of them used up to 70% to 80% of their salary by the first week after the monthly salary pay out.

The announcement drew mixed reactions from different parties, and while some section of the public welcome the decision, the employee union, Cuepacs and Human Rights Commission, Suhakam, are opposed to the idea. According to some public opinion, exercising a 2-cycle salary also means higher government expenditure due to increase in administration cost and resources expenses. And on top of that, the implementation will only ease the burden for the first half of the month, while the deduction of EPF, Socso, income tax and other statutory contribution may pose a financial danger due to insufficient remaining funds.

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