Don't delay new minimum wage hike for private sector, govt told

The Malaysian Trades Union Congress (MTUC) has urged Putrajaya against delaying the announcement of a new minimum wage rate for the private sector.

The last time the government reviewed the minimum wage was in May 2022, during former prime minister Ismail Sabri Yaakob’s tenure.

Ismail’s administration at that time increased the minimum wage - from RM1,200 to RM1,500 – for private sector companies with five employees and more.

MTUC deputy president Matkar Siwang said the anticipation of the new rate has caused anxiety among private sector workers.

In a statement issued in his capacity as MTUC’s acting president, Matkar (above) highlighted that the debate over the matter has intensified following Prime Minister Anwar Ibrahim’s announcement of a salary increase for civil servants.

Appropriate minimum salary above RM2k

Anwar is expected to announce the details of the civil servant salary adjustment mechanism at the 19th Majlis Amanat Perdana Perkhidmatan Awam event slated for Aug 16.

“The current minimum wage of RM1,500 is unreasonable and irrelevant due to the rising cost of goods. An employee earning the current minimum wage takes home a net income of RM1,330 after mandatory deductions.

“Employees are forced to work continuously, either through overtime or by taking on side jobs after regular working hours, to increase their income.

“The net income of RM1,330 is low, and this is one of the reasons for Malaysia’s ranking as second-worst country for work-life balance among 60 countries (in the Global Work and Life Balance Index),” Matkar said.

Further, he called on the government to refer to studies conducted by Bank Negara Malaysia, the United Nations Children’s Fund (Unicef), and the Employees Provident Fund (EPF) that suggest that an appropriate salary is above RM2,000.

“The new minimum wage rate should take into account various factors, including the rising cost of living, which is increasingly burdening lower-income workers.

“The government’s attention is needed to make a sound decision for private sector workers,” he stressed.

On May 16, Economy Minister Rafizi Ramli said Unicef’s proposed RM2,102 a month minimum wage would be carefully studied.

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