Malaysia

Government does not have to pay RM1.7 billion in pension arrears to civil servants (UPDATED)

The matter was decided after the Court of Appeal allowed the appeal by the government and the Director-General of the Civil Service against Foreign Ministry retiree Aminah Ahmad and 56 others.

Updated 4 months ago · Published on 09 Mar 2026 12:28PM

Government does not have to pay RM1.7 billion in pension arrears to civil servants (UPDATED)
The court found that the judicial review filed by Aminah on behalf of 56 other retirees was an abuse of court process that justified their intervention. - March 9, 2026

THE government has successfully overturned a High Court ruling that required pension adjustments for former civil servants based on a 2016 Public Service Department circular, after the Court of Appeal unanimously allowed its appeal in a case brought by pensioner Aminah Ahmad and 56 others.

The three-member appellate panel, chaired by Lim Chong Fong and sitting with Azhahari Kamal Ramli and Meor Hashimi Abdul Hamid, set aside the Kuala Lumpur High Court decision that had allowed Aminah’s judicial review application.

The ruling means that, for the time being, the government is not required to pay pension arrears amounting to RM1.7 billion to 531,976 pensioners.

Delivering the court’s decision, Azhahari said the matter of pension adjustments had already been determined by a previous Court of Appeal panel in 2022.

He stated that the High Court had erred when it allowed Aminah’s 2024 judicial review application, describing it as res judicata, or a matter that had already been adjudicated, and therefore an abuse of the court process.

He said Aminah’s entitlement to her pension and the issue of arrears had been addressed earlier in a 2017 originating summons.

“The High Court judge had decided that the applicant's (Aminah) contention that the implementation of the two per cent annual rate of pension increment is less favourable compared to the adjustment of pension based on salary revision before the amendment made under the Act, was incorrect, hence the issue of loss was not proven.

“In our view, the issue of loss that was raised in the 2017 OS was meant to support her prayer for the payment of the arrears of her pension.

“However, having failed to convince the court in the 2017 OS on her loss, the applicant, in the JR application, sought to rely on the service circular and contended that there should be a pension adjustment as there were purportedly salary increments under the said circular.

“In our opinion, the service circular should be raised in the 2017 OS,” he said.

Azhahari added that the appellate panel considered the case appropriate for intervention.

“The appeal is allowed, and we set aside the decision of the High Court judge.

“Since this appeal is of wide public interest and concern, and for the avoidance of doubt, we wish to state that this decision affects the 57 respondents here only due to the way their applications were crafted and pursued in court,” he said.

The bench made no order as to costs.

Following the ruling, lawyer Baljit Singh Sidhu, who represented Aminah, confirmed that his client would challenge the decision at the Federal Court.

He said he had received instructions to file an appeal at the country’s highest court.

The government and the Public Service Department were represented by senior federal counsel Ahmad Hanir Hambaly @ Arwi and federal counsel Muhammad Sallehuddin Md Ali. - March 9, 2026

Related News

Malaysia / 1w

School stabbing incident: Suspect arrives in court to face charges

Malaysia / 1w

No place for PAS in my govt if I become MB – Onn Hafiz

Malaysia / 1w

Johor state election: PAS ready to help BN form state government

Opinion / 2w

The future of this country is not determined by a person's race

Malaysia / 2w

Final appeal by prosecution: Lawyer confident decision will favour Syed Saddiq

Malaysia / 3w

Guan Eng, wife, businesswoman to stand trial for corruption linked to RM11.6m project

Spotlight

Malaysia

Rohingya teen faces death penalty after being charged with newborn baby’s death

Malaysia

Singapore: Chief Justice Sundaresh Menon to retire in Feb 2027, succeeded by Justice Sushil Nair

Malaysia

No further delays for water tariff hike in Penang - CM

Malaysia

Elderly fathers plead for help as sons vanish in suspected Southeast Asia scam networks

Malaysia

Social media influencer charged with statutory rape of underage girl in Kangar

Malaysia

Negeri Sembilan polls enter race mode as 36-seat battle begins

By Alfian Z.M. Tahir

World

Europe heatwave linked to around 12,000 deaths as climate risks intensify

You may be interested

Malaysia

Dewan Rakyat passes National Trust Fund Bill 2026

Malaysia

PETRA unveils LSS6 solar initiative with 2,500mw capacity to boost renewable energy transition

Malaysia

Two alleged loan shark runners jailed 18 months, fined RM20k each for harassing borrowers

Malaysia

Father mauled by crocodile as son watches in horror in Sabah river (UPDATED)

Malaysia

Bersatu's decision to use own logo signals voluntary split from PN in NS polls - Annuar Musa

Malaysia

Cabinet backs compensation orders for road accident victims

Malaysia

Dewan Rakyat passes Statistics Bill 2026 to strengthen data governance, evidence-based policymaking

Malaysia

Johor shuts down Forest City Network School premises