Govt to review minimum wage this year, says HR minister

PARLIAMENT | The government will be reviewing the minimum wage this year based on the National Wages Consultative Council Act 2011, said Human Resources Minister Steven Sim.

“We will of course take into account the views of all parties, including workers and employers as well as refer to socioeconomic reports such as Bank Negara reports,” he said in his ministry’s winding-up speech on the royal address debate.

This was in response to Rodiyah Sapiee (GPS-Batang Sadong), who raised the issue based on recommendations by Bank Negara and the Employees Provident Fund’s (EPF) project Belanjawanku.

In May 2022, Malaysia increased the national minimum wage from RM1,200 to RM1,500.

However, companies with fewer than five employees were granted an exemption until Jan 1, 2023, which was then extended to July of that year.

Progressive wage policy

In the same year, Economy Minister Rafizi Ramli proposed a progressive wage policy meant to complement the minimum wage.

In January this year, Rafizi said that the government will not arbitrarily impose the progressive wage policy, which is expected to begin with a pilot project in June.

The policy, he said, will instead take into account the ability of employers and the state of the country’s economy.

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Its implementation will be on a voluntary basis and will be incentivised by the government, he added.

Based on the system, increments will be tied to workers’ productivity and skills.

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