Even if the minimum wage for local workers is raised, it will not be enough for them as their take-home pay will be affected by the Employees Provident Fund (EPF deductions), said Deputy Minister in the Prime Minister's Department Razali Ibrahim.

"We have found that the cost of (paying) local workers is far higher.

"Even if we raise it (wage), it won't be enough to satisfy the workers in terms of their take-home pay because of EPF (contribution)," he said at a press conference in Putrajaya today.

Employees previously contributed 11 percent of their monthly salary to their EPF while employers contribute 13 percent for each employee.

In the Budget 2016 revision, Prime Minister Najib Abdul Razak had announced that the employees' contribution to EPF will be automatically reduced to eight percent effective March, although there is an option to opt to remain at 11 percent.

Razali also noted that companies tend to prefer to hire foreign workers as they do not have to pay EPF contributions.

Not only that, he said, if they were to raise the minimum wage of local workers, it would have a rippling effect.

They would then have to raise the wages of workers at all other levels of qualifications, too.

"We have (workers with) PhD, Masters, degrees, diplomas. If we raise the minimum wage, it will affect the others.

"You can't just maintain the wages at the other levels," he said.

His explanation comes in the wake of a deal signed by Putrajaya and Dhaka to bring in 1.5 million Bangladeshi workers here.

The workers are said to be taking up the dirty, dangerous and difficult (3D) jobs that locals supposedly are averse to.

But the hiring of the Bangladeshi workers did not go down well with locals, with many saying that locals are willing to work the 3D jobs, if the minimum wage is raised.

Razali also clarified that the government is not suggesting locals cannot do 3D jobs, but rather the country simply lacks the manpower.

"They (Bangladeshi workers) are brought in to do the 3D jobs.

"It's not that our people won't do (the jobs). It's just that they cannot do it at that mass level needed," he said.