More than 1.1 million civil servants will be able to enjoy an increased housing allowance, beginning November, announced Prime Minister Datuk Seri Najib Razak.

Speaking at the 14th Premier Civil Service Dialogue, Najib said the housing allowance of civil servants on Grade 41 and below will be increased from RM180 to RM300.

Najib who is also the Finance Minister said the financial implication of this move was RM1.04 billion annually.

Apart from the housing allowance, Najib also announced special financial aid of RM500 to civil servants on Grade 54 and below in view of Ramadan and Aidilfitri.

The financial aid will also be enjoyed by the over 700,000 government pensioners who will receive RM250.

The payments, amounting to RM1 billion, will be made on June 25.

"The payment is to help ease the financial burden of civil servants preparing for Ramadan and Aidilfitri," Najib said.