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##Problem: When users are placing files on a server with SFTP, the umask set in /etc/profile and sticky bits set on directories are ignored.

Solution: Modify /etc/ssh/sshd_config. Find the line near the bottom that looks like:

Subsystem      sftp    /usr/libexec/openssh/sftp-server

Change to the following, adjusting the umask as needed. This example sets permission to 664 for files and 775 for directories:

Subsystem      sftp  /bin/sh -c 'umask 002; /usr/libexec/openssh/sftp-server'

To fix it for SCP, you also need to add the following line to /etc/pam.d/login and /etc/pam.d/sshd

session    optional     pam_umask.so umask=0022