Reform minimum wage to upgrade senior staff pay along with juniors

Summary

• Groups call for reform to the minimum wage so that senior staff can enjoy pay hikes equal to those of their juniors.

• This policy should benefit those earning higher than the minimum wage but below the upper limit of the B40 category.

• They say the proposal is also in line with the Madani framework for offering dignified wages.

A group of trade unions and NGOs urged the government to implement reforms to the minimum wage order to ensure underpaid senior workers get their salaries upgraded as the minimum wage is hiked.

By adding a section called “wage adjustment” in the order, they said whenever the minimum wage is raised, the salaries of senior workers who are higher than the minimum wage but below the upper limit of the B40 group (RM5,250 threshold) should also be increased by the same rate.

“For example, the existing minimum wage of RM1,500 will be increased by RM200, or 13.3 percent, to RM1,700 in 2025.

“By implementing the wage adjustment section, workers earning between RM1,500 and RM5,250 will also be entitled to a 13.3 percent wage increase.

“After the wage adjustment, a senior worker earning RM1,600 will receive RM1,813,” they said in a joint statement today.

Among those who signed the statement are the National Union of Transport and Allied Equipment Workers, Sabah Plantation Industry Employees Union, Sabah Timber Industry Employees Union; Sabah Hotel, Resort dan Restaurant Employees Union and Tenaganita.

Years of service, little benefit

They argued that while the existing policy benefits new staffers, it brings little benefit to senior workers who have contributed greatly to the country's economic growth over the past few decades.

“The majority of senior workers started with a salary of RM500 or RM600 per month in the days when there was no minimum wage.

“After serving a company for 20 or 30 years, their salary may be only RM1,600, about the same as new workers with the current minimum salary of RM1,500,” the groups added.

Despite the implementation of the minimum wage policy over the years, they said senior workers are disappointed as their wages have not been adjusted.

They claimed that employers also refused to revise their salaries, citing financial constraints. They added that the former is only implementing the minimum wage because they have to comply with government regulations.

“But with the proposed wage adjustment section, it will be the most ‘straightforward’ method to help senior workers who are suffering from stagnant wages, bringing relief to families below the absolute poverty line and within the category of B40.

“This proposal is also in line with one of the priority policies of the Madani framework, which is ‘introducing legislation to lay the foundation for a dignified wage or wage rate that can guarantee a living wage for all’.”

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