KUCHING: Human Resources Minister V. Sivakumar has announced that the minimum wage in Malaysia will remain at RM1,500 under the upcoming progressive wage system. According to Sivakumar, the progressive wage system is the most relevant model for Malaysia, and it needs to be implemented alongside the minimum wage to boost worker productivity and benefit employers. He emphasized that reducing the minimum wage would be regressive, as it serves as the baseline for the progressive system. Sivakumar made these statements during a press conference at the Labour Dialogue held on August 26.
The progressive wage system is a transition from the minimum wage model to a gradual and phased wage increase that aligns with the country’s economic growth. On August 24, Economy Minister Rafizi Ramli confirmed that the progressive wage system policy has received Cabinet approval and its details will be presented in the October 2024 budget. The policy is expected to be implemented in April or May next year.
Sivakumar also revealed that the National Economic Action Council, led by Prime Minister Datuk Seri Anwar Ibrahim, has provided guidelines for the progressive wage system. Notably, the implementation of this system is not mandatory for all private employers. Sivakumar explained that setting RM1,500 as the minimum wage focuses solely on wage levels and doesn’t consider productivity. However, the government aims to encourage employers to adopt the progressive wage system voluntarily to ensure that skilled workers are adequately compensated and contribute value to their employers.
The Labour Dialogue in Kuching, where Sivakumar made the announcement, was attended by various stakeholders, including Deputy Minister Datuk Gerawat Gala, Sarawak Manpower Department director Awang Raduan Awang Omar, employers, trade unions, and training providers in Sarawak.
Sivakumar also mentioned that his ministry will examine the proposed Salary Advertisement Act, which would require employers to disclose salary scales for job advertisements. This measure aims to enhance transparency and provide job seekers with accurate salary information. However, Sivakumar clarified that the act is not currently obligatory for employers, and further discussions with stakeholders will be carried out to finalize the details of the proposal.
Previously, Muar Member of Parliament Syed Saddiq Syed Abd Rahman suggested through the social media platform X that graduates and workers should have the opportunity to evaluate the best salary offers available to them.
– Bernama
Credit: The Star : News Feed
