PETALING JAYA: The implementation of the RM1,500 minimum wage is no longer reasonable due to the high cost of living, says the Malaysian Trades Union Congress (MTUC).
MTUC acting president Matkar Siwang said the government cannot delay announcing the new minimum wage rate, adding that anticipation of a new rate is causing anxiety among private sector workers.
"The new minimum wage rate should account for various factors, including the rising cost of living, which increasingly burdens lower-income workers.
"The current minimum wage of RM1,500 is unreasonable and irrelevant due to the rising cost of goods," he said in a statement on Sunday (Aug 11).
The previous Minimum Wage Order was enforced in May 2022, setting the minimum wage at RM1,500 compared to the previous RM1,200.
Human Resources Minister Steven Sim was reported to have said the National Wages Consultative Council is currently preparing a report on the proposed minimum wage change to submit to the Cabinet.
Steven said the council, which includes representatives of employers, workers, and the government, held a meeting at the end of June to discuss the matter.
Matkar added that the financial capability of lower-income workers is especially distressing as they face the future without a salary increase.
"The MTUC is awaiting the announcement of the new minimum wage rate, which should have been enjoyed by workers on May 1.
"The new minimum wage rate could uplift private sector workers and help balance income and expenses.
"A worker earning the current minimum wage brings home a net income of RM1,330 after mandatory deductions.
"Workers are forced to work continuously, whether through overtime or taking on side jobs after regular working hours, to increase their income.
"The net income of RM1,330 that is brought home is low, and it is one of the reasons that Malaysia has the second-worst work-life balance among 60 countries," he said.
He added that the government can refer to several studies that have been conducted to determine the new minimum wage rate.
"Several studies, such as those by Bank Negara Malaysia, UNICEF, and others, showed that a suitable wage would be over RM2,000," said the MTUC chief.
