News: New minimum wage recommendation in Malaysia expected by August 2020

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New minimum wage recommendation in Malaysia expected by August 2020

Human Resource Minister M. Kula Segaran stated that currently the Minimum Wage Technical Committee was carrying out a study to arrive at a rate that would be suitable.
New minimum wage recommendation in Malaysia expected by August 2020

The Malaysian government expects to obtain the minimum wage recommendation from the Minimum Wage Technical Committee the latest by August next year, as per a report by Bernama.

Human Resource Minister M. Kula Segaran stated that currently the committee was carrying out a study and eliciting views from the stakeholders to arrive at a rate that would be suitable with the current situation.

"After obtaining the appropriate rate, the committee will submit the recommendation to me to be presented to the Cabinet before it is to be decided and announced to the public, " Segaran said.

Segaran added that in response to the Malaysian Youth Council's request for the government to raise the minimum wage to RM1,500 to ease the burden borne by the people. As per the report, council president, Jufitri Joha, was of the belief that the increase should be implemented as the current minimum wage of RM1,100 was not enough.

The discussion on minimum wage takes more significance given that as per Bank Negara’s annual report for 2018, salaries for fresh graduates were sinking. The report released on March 27th this year showed that starting salaries in 2018 for diplomas, basic degrees, honors’ degree, and master’s degree holders have fallen from 2010 levels.

For instance, a fresh graduate with a diploma earned a real salary of RM1,376 in 2018, a drop from RM1,458 in 2010 and a master’s degree holder earned a real salary of RM2,707 in 2018, also a decline from RM2,923 in 2010. 

Topics: Compensation & Benefits

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