Gred SSPA vs SSM Key Differences for Malaysian HR

Public sector pay in Malaysia is going through a big change. After more than 20 years using Sistem Saraan Malaysia (SSM), the government is introducing Sistem Saraan Perkhidmatan Awam (SSPA), which takes effect on 1 December 2024. Public servants are given an option window (21 October–30 November 2024) to choose whether to remain under SSM or move to SSPA.

HR and employers, especially those who hire ex-government staff or manage agencies that follow federal guidelines, understanding gred SSPA vs SSM is important. The change affects:

How grades are structured and mapped.
How annual increments and salary ranges are calculated.
How allowances and total rewards are packaged.
How staff view career progression, performance, and fairness.

Find the explanation on what SSM and SSPA are, the main differences between them, and the practical implications for HR, pay planning, and staffing in this article.

What is SSM? (Sistem Saraan Malaysia)

SSM is the public service pay system that started in 2002. It was built to bring in competency and performance elements to public sector salary structures.

Over the years, SSM has been improved:

In 2011, when SBPA was cancelled, SSM continued with a new Jadual Gaji Minimum Maksimum (JGMM) and general salary increases of 7-13%.
In 2016, SSM was further strengthened with changes to service schemes, entry grades, promotion layers and qualifications.

Main Features of SSM

SSM has helpful various features, such as:

Grades follow a traditional structure (for example Gred 11, Gred 19).
Each grade has a JGMM salary scale with minimum and maximum points.
Officers receive annual increments within that scale, linked to performance but using older rules.
Allowances and other benefits follow long-standing policies.

Why SSM Matters to HR

For HR, SSM gives:

Stable grade ladders that are familiar to payroll, finance and line managers.
Predictable salary budgeting, because increments follow known tables.
Clear promotion paths, based on grade, qualification and competency.

The system is stable, but after many years and rising cost of living, the government decided it needed a more updated, performance-focused framework.

What is SSPA? (Sistem Saraan Perkhidmatan Awam)

SSPA is the new pay system for the public service. It will replace SSM from 1 December 2024. SSPA is part of a wider effort to:

Improve public sector productivity.
Adjust pay so it better matches today’s cost of living.
Manage the country’s financial position in a more sustainable way.

Main Features of SSPA

In SSPA, you can see:

A new grade structure (for example N1, M1, etc.) and updated JGMM salary tables.
Pay and movement in the scale place stronger weight on performance and behaviour.
Allowances, benefits and some facilities are enhanced as part of a total reward approach.

SSPA follows three core ideas, sometimes called the DNA of the system: Dynamic, Value, Fair.

Dynamic means structures and schemes are more flexible and future-ready.
Value means the system supports good values and ethics in service.
Fair means fairness across the whole employee journey, from entry to retirement.

Why SSPA Matters to HR

SSPA can bring:

New grade names and mappings that must be reflected in HR systems and letters.
Higher performance standards for annual movement (for example evaluation marks above 75% instead of 60%).
Different salary and allowance costs, which will affect budgeting and workforce planning.

Key Differences SSM vs SSPA

Here is a simple side-by-side view based on the reference table and SSPA documents:

Area	SSM	SSPA
Grade structure / gred	Uses traditional grades such as Gred 11, Gred 19 and so on.	Uses a new grade structure aligned with SSPA, such as N1, M1 and other updated labels.
Salary movements / increments	Uses existing JGMM scales and older rules for annual increments linked to performance.	Uses new JGMM tables and stronger performance rules (for example higher minimum marks and clearer conditions).
Allowances and benefits	Keeps traditional allowance and benefit structures built under SSM.	Updates and improves allowances, benefits and overall reward packages, including pay and certain facilities.
Implementation	Has been used since 2002 and continues for officers who choose to stay on SSM.	Starts on 1 December 2024, with an option period from 21 October to 30 November 2024 for eligible officers to switch.
HR impact	Gives stability in grades and salary planning with familiar processes.	Requires HR to manage transition, re-map grades, adjust budgets and update communication and performance practices.

From this table, HR should understand that SSPA is a new framework with:

New labels and salary tables.
Different rules for increments and recognition.
A stronger link between performance and pay.

Because of this, HR needs to plan ahead.

What Employers & HR Should Prepare For

This is the part where policy changes become real work for HR and employers.

Check Which Staff are Under Which System

Start by listing staff who are still fully under SSM and eligible to switch to SSPA based on the circular.

This helps you see where grade names will change and where pay and allowances might move.

Review the Budget Impact

SSPA comes with updated JGMM salary values and better allowances/benefits. HR and finance teams should work together to:

Estimate the new salary bill if staff move to SSPA.
Consider the effect on pension and other long-term costs.
Plan for any transition or adjustment payments.

Prepare Clear Communication for Staff

Pay and grade changes can create worry if staff do not understand them. HR can:

Write simple FAQs in Bahasa Malaysia and English.
Explain with examples how an officer’s grade code, salary point and increment rule will look under SSPA.
Hold short briefing sessions or webinars to answer questions.

Align Performance Management with SSPA

Because SSPA links pay more tightly to performance, check:

Whether existing performance forms and rating scales still make sense.
Whether managers know what a “75% and above” rating means and how to use it fairly.
How will poor performance be managed so that salary movement decisions are consistent and defensible.

Watch Recruitment and Retention

A refreshed public sector pay system may change how people compare government vs private jobs.

Private-sector HR may need to:

Check if their pay for certain roles (for example, professional and technical grades) is still competitive versus SSPA.
Highlight non-pay advantages such as flexible work, culture, faster progression or bonuses.

FAQ

Who is eligible for SSPA?

SSPA applies mainly to Federal Public Service officers. The circular also allows State Public Services, Local Authorities and Statutory Bodies to adopt it if their authorities agree. The option to switch is given to permanent officers; contract officers will follow updated terms based on SSPA guidelines.

Do officers have to switch from SSM to SSPA?

No. Officers are given a choice. During the option period from 21 October to 30 November 2024, they can choose to move to SSPA or stay on SSM. If they do not submit an option, their position will follow the detailed rules in the circular (normally they remain on the existing system).

What happens to my grade if I stay on SSM?

If an officer chooses to stay on SSM, their current grade and JGMM scale remain under SSM rules. They do not move to the new SSPA grade labels or structure. The circular explains how future adjustments are handled for officers who stay in SSM.

How will salary increments work under SSPA compared with SSM?

Under SSM, increments follow existing JGMM tables and earlier performance rules.
Under SSPA, salary movement (for example Kenaikan Gaji Tahunan, KGT) depends on:

Performance marks that meet a higher minimum level (such as 75% and above).
No serious disciplinary issues.
Completion of the required period in the grade.
Confirmation by the evaluation panel.

Some officers close to the salary ceiling will use KGM rules, and some may keep a higher personal KGT under certain conditions.

Does SSPA apply to all public sector employees?

SSPA is designed for the Federal Public Service, but its provisions are also extended to State Public Services, Local Authorities (PBT) and Statutory Bodies, depending on whether each body chooses to adopt it. Different uniformed services and agencies (such as PDRM, SPRM, APMM, ATM) will receive implementation details through their own circulars.

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