KUCHING – The minimum wage of RM1,500 will continue to be maintained under the policy framework of the progressive wage system to be introduced by the government, said Human Resources Minister V. Sivakumar.
He said the progressive wage system, which is seen as the most relevant to be implemented in Malaysia, should be aligned with the minimum wage and increase worker productivity while simultaneously benefiting employers.
“The minimum wage of RM1,500 is the baseline; if we lower the minimum wage figure, that is not progressive, but regressive,” he told a press conference after the Labour Dialogue programme here today.
The progressive wage system is a transition from a minimum wage model to a gradual and phased wage increase that corresponds to the country’s economic growth.
On Thursday, Economy Minister Rafizi Ramli said the progressive wage system policy has been approved at the cabinet level, and the details will be tabled in Budget 2024 in October, with its expected implementation in April or May next year.
In the meantime, Sivakumar stated that the National Economic Action Council meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim to outline policy directives stipulated that the implementation of the progressive wage system for employees is not mandatory for all private employers.
“When we set RM1,500 as the minimum wage, it does not involve the issue of productivity, therefore, we want skilled and talented workers to be paid commensurately immediately, becoming an added value and asset to their employer to stay employed.
“Eventually, employers will recognise the necessity of implementing progressive wages. Therefore, for the initial stage, we will allow employers to decide whether to use the progressive wage system or not,” he said.
The dialogue, which discussed labour issues in the state, was also attended by Deputy Minister in the Sarawak Premier’s Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala, Sarawak Manpower Department director Awang Raduan Awang Omar, employers, trade unions, and training providers in Sarawak.
Sivakumar also stated that his ministry would look into the proposed Salary Advertisement Act to make employers more transparent by requiring them to post a salary scale for jobs advertised.
“The proposal is good for the people, and what is good for the people, we are ready to consider. We will discuss with stakeholders the details of this matter,” he said, adding that for now, the act does not oblige employers to do so.
Earlier, Muar MP Syed Saddiq Syed Abdul Rahman proposed, via social media platform X, that graduates and workers be given the opportunity to evaluate the best salary offer for them. – August 26, 2023