HUMAN Resources Minister Steven Sim Chee Keong said the government will review the minimum wage this year in line with the National Wages Consultative Council Act 2011.
In his ministry’s winding-up speech on the royal address, Sim said they will consider the views of all parties, including workers and employers while also referring to socioeconomic reports such as reports from Bank Negara Malaysia (BNM).
“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 remarked.
Sim said this in response to Batang Sadong MP Rodiyah Sapiee 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.
Yesterday (March 13) the Malaysian Trades Union Congress (MTUC) said the recent hike in the sales and service tax (SST) escalated the need for a raise in the country’s minimum wage.
MTUC secretary-general Kamarul Baharin Mansor also called for a review of the minimum wages order, pointing out that it had been almost two years since the minimum wage was set at RM1,500.
In a statement, he noted that the review was urgently needed given the increase in SST, cost of essential goods, and other necessities like water and electricity.
He also noted that the National Wages Consultative Council Act 2011 mandates that the council restudy the minimum wages order every two years.
“The minimum wage rate must be studied and a new rate set, in keeping up with the latest increases in the cost of living,” Kamarul said. – March 14, 2024
