Govt wants RM1.5k minimum wage implemented soonest - Saravanan
PARLIAMENT |The government has proposed that the new monthly minimum wage of RM1,500 be implemented as soon as possible, instead of towards the end of the year, due to the economy’s encouraging recovery at this time.
Human Resources M Saravanan added that the cabinet has already agreed to raise the monthly minimum wage to RM1,500 in principle.
“Based on the projections in Budget 2022...
PARLIAMENT | The government has proposed that the new monthly minimum wage of RM1,500 be implemented as soon as possible, instead of towards the end of the year, due to the economy’s encouraging recovery at this time.
Human Resources M Saravanan added that the cabinet has already agreed to raise the monthly minimum wage to RM1,500 in principle.
“Based on the projections in Budget 2022, economic performance is expected to grow at a rate of 5.5 to 6.5 percent in 2022.
“In regard to this matter, the government proposes to implement the new minimum wage as soon as possible and not at the end of this year, seeing as the current economic situation in the country is seen to have improved and many businesses are expanding and showing a recovery trend,” Saravanan said during the question-and-answer session in the Dewan Rakyat today.
He was responding to questions from M Kulasegaran (Pakatan Harapan-Ipoh Barat), Idris Jusoh (BN-Besut), Syed Saddiq Syed Abdul Rahman (Muda-Muar) and Shaharizukirnain Abd Kadir (PAS-Setiu) about when the RM1,500 monthly minimum wage will be implemented.
Time needed to examine the issue
However, Saravanan said they are unable to implement it immediately as the government still needs time to thoroughly examine the issue from various aspects.
“We have a responsibility (as the government), we need to review this matter thoroughly, so the cabinet has discussed this matter from various aspects for the last three weeks,” he said.
He noted that the government would usually increase the minimum wage every two years after a review, but he said this is in normal situations.
It is now an “extraordinary” situation, he said, as usually when dealing with unemployment, it is an employer’s market. But now, it is an employee’s market.
“As a worker, I have a choice whether or not I want to accept the wages offered by the government or continue with the gig economy that can provide a lot of earnings.
“So now the government is examining the matter, including informal sectors,” Saravanan said.
Previously, Prime Minister Ismail Sabri Yaakob had said the government was holding engagement sessions with employers on the RM1,500 minimum wage to enable it to be implemented holistically.
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