Faculty of Administrative Science and Policy Studies

Diploma in Public Administration

Topic : Allowance in service (Regulation 14 stated in general order)

Prepared by :
Name No matriks
Amirul Ehsan bin Mohd Adnan 2020817624
Ain Amirah Anuar 2020881886
Izzah Khadijah binti Saidi Ali 2020871266
Nur ajlaa Batrisyia binti Razman 2020472012
Hidayatul Hanim binti Mohammed 2020463642

Class:
AM1102A

Prepared For :
Madam Rafizah binti Mohd Nor

Date of Submission :
Week 12
Table of Contents

1.1 Introduction...................................................................................................................................1
2.1 Principles of allowances.................................................................................................................2
2.1.1 Non -Universal Principle...............................................................................................2
2.1.2 Non-Regular Principle...................................................................................................2
2.1.3 Non-Permanent Principle...............................................................................................2
2.1.4 Principle of Equality......................................................................................................3
4.1 Allowances, Facilities And Payments For Carrying Out Official Duties In The State.............3
4.1.1 Meal allowance..............................................................................................................3
4.1.2 Daily allowance.............................................................................................................4
4.1.3 Hotel rental payment......................................................................................................4
4.1.4 Fixed replacement allowance.........................................................................................4
4.1.5 Driver's salary assistance allowance..............................................................................5
4.1.6 Driver's living allowance...............................................................................................5
4.1.7 Fare replacement............................................................................................................5
4.1.8 Motorbot travel allowance.............................................................................................6
4.1.9 Bicycle allowance and motorcycle allowance................................................................6
4.1.10 Public transport fares.....................................................................................................6
4.1.11 Miscellaneous expenses.................................................................................................6
5.1 Allowance and Payment on Transfer and House-moving...........................................................7
6.1 Territorial Exchange Allowance...................................................................................................8
6.1.1 Provincial housing allowance........................................................................................8
6.1.2 Regional incentive payments.........................................................................................8
6.1.3 Fare of visiting the region of origin................................................................................9
6.1.4 Fare of accompany the corpse......................................................................................10
6.1.5 Interference allowance.................................................................................................11
6.2 Actual Salary Of Officers....................................................................................................11
6.3 Officer Qualification Rate....................................................................................................11
7.1 Conclusion....................................................................................................................................12
Reference............................................................................................................................................13

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1.1 Introduction

An allowance is a monthly additional payment on top of the salary given to an employee.

Allowances are divided into four, namely the non-universal principle. It means an allowance

is given to a specific group or prescribed service. The second is the non-regular principle. It

means that the allowance is given in certain situations or circumstances only. For example,

overtime allowance. Employees can only if they work overtime. The third is the non-

permanent principle. It means that the allowance is only paid at a set time or is temporary and

not permanent. It can be revoked or terminated immediately if the officer is not doing his job

and is no longer serving in his duties. For example, financial duty incentive allowance. The

fourth is the principle of equality. It is distributed and given fairly and equally among the

officers. It is not limited to any particular service, group or grades. It can also be given to any

officer who is found eligible for allowance.

Among the allowances that are commonly heard is the internet allowance. It is given

if the officer or employee needs to work at home or the phone used needs internet to do the

work. The second is the transportation allowance. It is given if an employee needs a vehicle

to meet a client or an officer living far away from the workplace. The third allowance is the

parking allowance. It is given to officers who park vehicles in the office building area. It can

reduce the fees charged or even free.

Among the effects that can be seen from the provision of allowances to officers is that it

can reduce the financial burden that officers face. For example, housing allowance, it can

reduce the burden of paying rent. The second is COLA. It stands for cost-of-living allowance

or often referred to as subsistence allowance. It can alleviate the burden of a high standard of

living especially if working in the city center. Third is that officers will feel their tiredness is

worth it and pays off.

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2.1 Principles of allowances

The principles of granting of allowances set out in Sistem Saran Baru (SSB) and Sistem

Saraan Malaysia (SSM) are maintained as they are still relevant to the improvement of the

explanation as follows:

2.1.1 Non -Universal Principle

The non-universal principle allows allowances to be given specifically to certain groups or

services, Allowances are given based on the uniqueness of a service, group or task. For

example, allowances paid to Medical Officers and Dental Officers gazette as Specialists.

Among the types of allowances that use this principle such as Fixed Remuneration for Main

Positions, Fixed Remuneration for Entertainment, Incentive Payment for the provision of

allowances to groups or Critical Services and others.

2.1.2 Non-Regular Principle

The non-regular principle stipulates that allowances are only given in certain circumstances.

Allowances are given based on tasks performed outside the norm of a service, group,

organization and the like. For example, the Tree Climbing Task Incentive Payment paid to

officers of the Peninsular Malaysia Forestry Department who are instructed to perform tree

climbing tasks. Among the types of allowances that use this principle such as Regional

Incentive Payment, Interruption Allowance, Overtime Payment and others.

2.1.3 Non-Permanent Principle.

The non-permanent principle determines that allowances are given temporarily. Allowances

can be withdrawn, terminated or revoked if an allowance is no longer relevant or no longer

meets certain criteria for granting the allowance. This principle also determines that

allowances can be given according to a certain period. For example, English Proficiency

Incentives paid on a periodic basis to Education Service Officers who teach English subjects

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 in schools and achieve a CI or C2 band in the Cambridge Placement Test or Aptis Test from

1 January 2014 to 31 December 2016 .This principles Can be canceled or terminated if the

officer no longer performs a relevant task. Among the examples of allowances that use this

principle such as Financial Duty Incentive Payment, Work Indemnity Allowance and others.

2.1.4 Principle of Equality

The principle of equality is allowing the granting of allowances to be extended to certain

services, groups or grades that are eligible and meet the criteria of an allowance. For

example, the Enforcement Incentive Payment paid to enforcement officers in the

Enforcement Division, Ministry of Domestic Trade and Consumer Affairs in 2001 was

extended to certain public service officers who carry out enforcement activities. Guarantee a

fairer allowance. Not limited to any particular service, group or grade. Can be extended to

officers in other eligible services. For example, the Financial Task Incentive Payment

(BITK) is extended to a service scheme equivalent to or lower than the Administrative

Assistant (P/O) service scheme who performs full -time financial duties.

4.1 Allowances, Facilities And Payments For Carrying Out Official Duties
In The State

Officers performing official duties in the state are eligible for allowances, facilities and fees.

The meaning of official duty in the state is when the officer carries out official duty outside

the headquarters in the state. If the facility is not provided by the government or the

organizer, the officer is eligible to receive an allowance or payment. Some allowances to be

claimed require support such as receipts. The allowance received must be related to official

duties taking place in the state. Officers who use their own facilities to carry out official

duties, are eligible to receive an allowance at a certain rate.

4.1.1 Meal allowance

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If food is not provided by the organizer or the government, the officer is eligible to receive a

meal allowance. If some dining facilities are not provided, the prescribed rate is 20% of the

meal allowance for breakfast, 40% of the meal allowance for lunch and 40% of the meal

allowance for dinner. Meal allowance is only eligible to be given to officers on official duty

outside the headquarters more than 24 hours from the time of departure. It will not be valid if

the officer is on official duty for more than 3 consecutive months.

4.1.2 Daily allowance

Officers who are on official duty for more than 8 hours and not more than 24 hours outside

the headquarters are eligible for their daily allowance at the rate of half of the meal allowance

entitlement.

4.1.3 Hotel rental payment

Officers who are required to stay in the state, outside the headquarters which is more than

25km away can claim hotel rent. To claim the hotel rental payment must be reasonable,

reasonable and supported by a receipt. If the claim is more than the qualification of not more

than 20%, the controlling officer may approve it. Claims can only be made if there are no

accommodation facilities provided by the government or the organizer.

4.1.4 Fixed replacement allowance

To obtain a fixed replacement allowance, officers are on official duty outside the

headquarters for more than 3 months and not more than 6 months. If the officer spends the

night on official duty, the allowance given is 2/3 of the meal allowance and hotel rental

payment is given with the number of days the officer is on duty. If the officer is not on duty,

the allowance given is 2/3 of the daily allowance given with the number of days the officer is

on duty. The number of days on duty is calculated from the day of arrival. If he returns to his

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headquarters temporarily for not more than 7 days, and resumes duty he is still eligible for a

fixed replacement allowance as he is still considered to be resuming duty.

4.1.5 Driver's salary assistance allowance

For officers who employ a full -time licensed driver, the driver's salary assistance allowance

is given by enclosing supporting documents such as a copy of the driver's appointment letter

by the officer, driving license and driver's identity card. The allowance given cannot be paid

to parents, mothers -in -law, husbands or wives or children themselves.

4.1.6 Driver's living allowance

The officer who employs the driver, and his driver spends the night with him outside the

headquarters to carry out official duties gets the driver’s living allowance at a rate determined

by place. For peninsular Malaysia RM30 for one night, Sabah and Sarawak RM40 for one

night and RM45 in Singapore and Brunei Darussalam for one night.

3.7 Vehicle travel allowance

If the officer uses his own vehicle to carry out official duties in the state outside the

headquarters, the officer is entitled to a vehicle travel allowance if the vehicle is not provided

by the government or the organizer. Officers wishing to claim travel allowance for vehicles

using aircraft and train services must ensure that the distance between the two places is 240

km.

4.1.7 Fare replacement

Officers who use their own vehicles approved by the head of department and do not use

direct aircraft or train services can claim replacement fares at a claim rate equal to the price

of an airplane or train ticket. Using his own vehicle to work in one place only which is more

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than 240 km from the headquarters. Replacement fares are encouraged if using your own

vehicle on Fridays rather than direct service.

4.1.8 Motorbot travel allowance

Officers who do not receive facilities from the government or the organizers and use their

own motorbot to carry out official duties are eligible for motorbot allowance according to the

set rate, namely, 50 cents per 1 km for 10 horsepower and below, 75 cents for 10 horsepower

to 25 horsepower and 95 cents for more than 26 horsepower

4.1.9 Bicycle allowance and motorcycle allowance

Officers who use bicycles to carry out official duties are eligible to claim bicycle allowance

according to the rate. If the officer uses a bicycle for more than 10 days during the month, the

allowance given is RM90 per month or 20 cents per km or whichever is higher. Officers who

use bikes for less than 10 days in the month, then 20 cents for each one km. If the bicycle is

provided by the government or the organizer, then bicycle allowance is not eligible for claim.

Motorcycle allowance is given when an officer uses a motorcycle for official duty. Officers

who work for more than 12 days or more during the month, then claim an allowance of

RM120 per month or use the rate of Vehicle Travel Allowance whichever is higher and

officers who use less than 12 days must make a claim according to the rate of Vehicle Travel

Allowance.

4.1.10 Public transport fares

Officers who use taxis, rental cars, buses, motorboats and others in the category to carry out

duties outside the headquarters and do not use their own vehicles or facilities provided by the

government or the organizers are eligible for public transport fares supported by receipts.

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 4.1.11 Miscellaneous expenses

Miscellaneous expenses are claimed when there are telephone charges, postal charges, fax

charges related to the official affairs of officers outside the headquarters. If the officer stays

outside the headquarters for not less than three nights, is eligible for laundry expenses

supported by a receipt. In addition, airport taxes, excess baggage containing official items is

supported by receipts, parking fees, tolls and ferry fares.

5.1 Allowance and Payment on Transfer and House-moving

This allowance is given because the officer changes and moves house provided there

are no expenses, additional fees or facilities that are eligible to be claimed in connection with

the change. For example, the expense of sending personal goods to another place. an officer

who transfers alone without bringing a family is only entitled to claim allowances such as

hotel rent, meal replacement allowance, and travel fare at a single rate in advance and if the

officer's family comes, the officer is entitled to claim the balance of the allowance. the claim

for meal replacement allowance binding on the meal allowance rate is for a period of three

days before and five days after the change, according to the actual number of family

members. exchange allowance claims involving n occupants are at the hotel rental rate for a

period of three days before and five days after exchanging according to the actual number of

family members.However, the number of rooms is limited to three rooms either double rooms

or single rooms. If using a double room, officers other than officers who are eligible to claim

hotel rent at the actual rate are eligible to claim an additional 25% of the rate entitlement

under the relevant official duty circular.However,this claim requires the officer to submit an

invoice or receipt

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6.1 Territorial Exchange Allowance

6.1.1 Provincial housing allowance

This allowance is given to Officers who change provinces.

Qualified Officers:

All officers who changed Provinces eligible for Housing Allowance Territory, The officer

who inhabited the house purchased by an employee's spouse with government housing loans

in the first station serving is eligible for Housing Allowance Territory.

Non-qualified officers:

Officers who have been paid their Fixed Remuneration Housing (ITP), Officers who is

occupying the government’s house (house allocated to officers individually or by sharing),

Officers who is occupying the government’s house allocated to husband or wife. Husband

and wife of officers who change Territory and does not occupy the Government’s house, can

be paid ITP respectively. However, one of them can choose EPW.

6.1.2 Regional incentive payments

Regional Incentive Payments (BIW) are paid to Public Service officers who changed

territories. Officers who change territories are as follows:

Appointed officers from Sabah and Sarawak and/or stationed on the Peninsula; Officers from

the Peninsula who are appointed and/or stationed served in Sabah and Sarawak; Officers

from Sabah and Sarawak who exchanged in those states.

Qualified Officers:

Eligible officers receive Incentive Payments The territories are as follows:

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Officers originating from Sabah, Sarawak or Labuan appointed and/or placed served in the

Peninsula. Officers originating from the Peninsula appointed and/or stationed in Sabah,

Sarawak or Labuan. Officers from Sabah, Sarawak or Labuan who exchanged between the

states.

Non-qualified officers:

Officers who are not eligible to receive Incentive Payments The territories are as follows:

Officers who is receiving the Subsistence Allowance (COLA) Officers who have taken a

course for more than 3 months, the same whether in or outside the country.

6.1.3 Fare of visiting the region of origin.

Fare of visiting the region of origin provided to Public Service officers who change provinces

as a facility to enable the officer and his family members to visit the territory of origin. This

facility has been implemented through Service Circular No. 6 of 1987, Service Circular No. 7

of 1997, Service Circular Letter No. 6 of 2006 and PSD circular letter dated 12 October 2000.

The implementation of the Fare to Visit the Home Region facility is as follows:

The officer shall declare his territory of origin subject to one declaration during the period of

service and recorded in the Service Book of the officer; Round trip fares are provided from

the residence of officers in the serving province to the capital of the home province or a

major city in the home province; The fare rate covers the entire cost of the transportation fare

including the airfare which includes the price of the flight ticket, airport tax, passenger

insurance and fuel surcharge. Other expenses such as accommodation, meals, etc. are the

responsibility of the officer himself; Use aircraft services provided by Malaysia Airlines

System (MAS) or other airlines approved by the Government from time to time; The wife or

husband of the officer can be provided fare according to the qualification of the officer while

the fare for the officer's child is Economy Class. This facility is given once in a period of one
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year of service of the officer in the territory of the settlement. Fare Facilities to Visit the

Territory of Origin that are not used during the period will expire and cannot be carried

forward to the next year; The officer must serve for 6 months in advance in the settlement

territory to enable the officer to use this facility for the first time. The 6 -month period starts

from the date of self -report of the officer in the settlement territory. Eligibility for the second

and subsequent times is at any time in the year following the date of self-report of the officer

in the local territory; The period of an officer’s unpaid or half -paid leave shall not be taken

into account in determining eligibility for this facility. The period of such leave shall be

added to the period of service of the officer to determine the eligibility for the next facility;

For officers and wives or husbands who both change provinces, only one person is eligible to

use the Home Territory Fare facility to bring the family to visit the home province in a given

year while the husband or wife can use the fare facility at the bachelor rate according to the

eligibility specified in the period The same; Officers who use the Village Return Allowance

allocated to Education Service Officers and other officers in the Support Group who change

provinces and serve in rural schools are not eligible to use the Home Territory Visit Fare

facility. However, the wife or husband of an officer may use the Fare to Visit the Territory of

Origin facility at the single rate for the same period; For spouses or children who do not

follow the officer changing provinces are allowed to use this fare to visit the officer; ; Lastly,

An unmarried officer who returns to his home territory by using the Home Territory Visit

Fare facility at his own expense to get married, may be provided a travel fare to bring his

wife or husband to the officer's residence territory;

6.1.4 Fare of accompany the corpse.

Policies and regulations relating to funeral fare facilities have been clarified through

paragraph 8, service circular number 5 of 1978 and service circular letter number 3 of 2003.

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The rule provides that in the event that an officer who changes provinces dies in the serving

province, family members of the officer are given the facility of airfare to accompany the

remains of the officer to the province of origin. After that, the officer's spouse or a family

member is allowed to return to the place where the officer is serving to arrange for the

transfer of goods at the expense of the government.

The existing rules do not provide a Funeral Weighing facility to an officer when a member of

his family dies in the territory of the officer serving. The existing rules also do not provide

the facility of Weighing Accompanying Funerals and Fare to Manage the Transfer of Goods

to the heirs of a single officer if the officer dies in the territory of service.

6.1.5 Interference allowance

Allowance paid to an officer who changes provinces at the rate of one month's actual salary

when the Officer is transferred back to his original Territory. The officer may be paid an

advance of half of the actual salary upon conversion and the remaining payment of the other

half may be paid based on the last salary received before returning to the original Territory.

6.2 Actual Salary Of Officers

A set amount of money for civil servants based on the concept of a reasonable salary to meet

the basic needs of food, clothing and housing.

6.3 Officer Qualification Rate

Interruption allowance is paid at the rate of one month's actual salary of the officer when the

officer is transferred back to his home territory. An officer can be paid a Harassment

Allowance in advance of half of his salary when he is required to change provinces. The

balance of this Interruption Allowance will be paid based on the last salary received by the

officer before he changes back to his home territory.

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7.1 Conclusion

For the conclusion,Offering allowance to your employees is important because it

shows them that you are invested in not only their health, but their also future. A solid

employee benefit can help them to attract and retain their talent.Thus,the amount of

allowance can help you differentiate your business from competitor.

By given allowance to Employess,focus and productivity will increased because they

don’t worried about things in their personal lives, such as childcare,finances and illnesses. If

employees are worried about these things, they not be able to focused on their work. offer

allowance to them will help them to relieve their stress. When employees have the ability to

take care of issues beyond work, they can be more present at work. Based on the survey,,

51% of the employess agreed that benefits impact their ability to focus at work..In

addition,51% agreed that benefits will impact their productivity at work

However,Offering allowances also have their disadvantages.Some of Small business

has limited resources and might not to able give the better allowance for the

employees.So,the employess have a high possibility to find a new job that have better offer of

allowance benefit .In addiction,sometimes,a better allowance also be seen as not enough.Its is

because employess feel like they overworked but underpaid no matter how good the benefit

that you give to employess.

In the pros and cons of employee allowances, the objectives is often to attract and

retain the best possible employees in the organizatiion. Good benefits are seen as a way to

inspire higher levels of employee loyalty. If the costs of those benefits can be managed well,

then it can be a good thing to provide to them that they organization aware about their charity

even if they are not legally mandated in every jurisdiction.

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 Reference

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1.1
Allowances. (2021). Jpa.gov.my. https://www.jpa.gov.my/en/allowances
DEWITT, K. (2017, August 14). Importance of Employee Benefits | Increased Focus, Loyalty, &
More. Patriot Software. https://www.patriotsoftware.com/blog/payroll/why-are-employee-
benefits-important-purpose/
Gaille, B. (2016, June 28). 12 Pros and Cons of Employee Benefits. BrandonGaille.com.
https://brandongaille.com/12-pros-and-cons-of-employee-benefits/
Ministry of Finance Malaysia. (2003). Kadar dan Syarat Tuntutan Elaun, Kemudahan dan Bayaran
kepada Pegawai Perkhidmatan Awam kerana Menjalankan Tugas Rasmi (Tidak Termasuk Anggota
Tentera dan Anggota Polis). 2003
soalan_lazimfaq_berkenaan_tuntutan_elaun_perjalanan_2016.pdf. (n.d.).
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laun_perjalanan_2016.pdf
JPA. Tuntutan Perjalanan Bertugas Rasmi Dalam dan Luar Negeri.pdf. (n.d.).
https://docs.jpa.gov.my/docs/pilmu/bukukew/BUKU%20KEW/tugas%20rasmi%20dlm%20&
%20luar%20ngri.pdf

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