HR Ministry reviewing minimum wage order

KUALA LUMPUR: The Human Resources Ministry is reviewing the minimum wage order, said its Minister, V. Sivakumar.

This, he said, is being done via the National Wages Consultative Council.

“This has to be done at an interval of two years in line with the National Wages Consultative Council Act 2011,” he said during his ministerial reply on the Budget 2024 in the Dewan Rakyat on Thursday (Nov 2).

He said the government is serious about the agenda to restructure wages, especially by implementing the minimum wage order.

“The revaluation of the minimum wage rate will be done from time to time, based on the country’s economic growth and the changes in the people’s cost of living,” he said.

The minimum wage order was enacted on May 1, 2022, with a monthly minimum wage of RM1,500 for all sectors, regardless of region, for employers with five or more workers.

He added the Progressive Wage Policy, which will be voluntary and based on incentives and related to productivity, will complement the Productivity-Linked Wage System (PLWS).

“The implementation of the PLWS ensures the wage increase will be in tandem with the increase in productivity and better performance,” he said.

“This system will also allow employees to get a fair share of wages based on better productivity and performance.”

As of Sept, 98,119 employers have implemented the PLWS, benefiting 5.9 million employees on all employment levels, including the semi-skilled.

“The government realises that there is a need to review and establish a comprehensive guideline for salary determination to increase the efficiency of wage and salary determination in various categories, including the semi-skilled and starting salaries for fresh graduates,” he added.

On Oct 30, Economy Minister Rafizi Ramli said a white paper on the progressive wage policy will be tabled in Parliament on Nov 30.

Rafizi said the plan would detail the basic features and mechanism for implementing the policy.

He said this is because there was no room to elaborate on the policy during the tabling of Budget 2024 on Oct 13.