Enforce minimum wage compliance strictly, says MTUC


PETALING JAYA: The Labour Department must intensify enforcement to ensure all employers comply with the newly mandated minimum wage, says the Malaysian Trades Union Congress (MTUC).

Its president Mohd Effendy Abdul Ghani warned that without stringent enforcement, many workers risk not receiving the new minimum wage, thereby undermining the policy’s objectives.

“Laws without enforcement are merely documents without value, allowing irresponsible employers to continue exploiting workers by paying below the minimum wage,” he said in a statement on Friday (Jan 31).

He urged the department to take firm action against employers who fail to comply with the directive, stressing that no worker should be deprived of their rightful wages.

He also said the minimum wage should not be seen as a suitable pay scale for all workers but rather as a safety net for those without formal education or specialised skills.

“The increase in the minimum wage should not be mistaken as an appropriate wage level for those with academic qualifications or technical expertise,” Effendy said.

He said MTUC urged the government and employers to recognise educational and skill levels by implementing a structured, fair wage scale.

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“SPM holders should receive a salary above the minimum wage.

“Those with technical certificates and diplomas should be paid wages commensurate with their technical and professional expertise.

“And those with Bachelor’s degrees and engineering qualifications should receive significantly higher wages in recognition of their expertise and contributions to the industry,” he added.

Effendy stressed that categorising skilled and educated workers under the minimum wage bracket would devalue education and demotivate the younger workforce from upgrading their skills.

To address this, he urged the government to introduce a “dignified wage policy” that acknowledges education and skill levels in salary structures.

He said employers must also ensure fair and competitive pay scales to adequately reward workers based on their qualifications.

“The government must implement policies that reflect the true value of workers’ education and experience, while employers should establish wage structures that attract and retain talent,” he added.

At the same time, he said the MTUC welcomed the Human Resources Ministry’s announcement of the Minimum Wage Order 2024, which takes effect tomorrow on Feb 1.

Under the new order, employers with five or more workers must pay a minimum wage of RM1,700 per month.

“This is a positive step in safeguarding workers’ well-being, particularly amid rising living costs,” Effendy said.

The wage increase, he said, aligns with the government’s efforts to strengthen workers’ purchasing power and promote sustainable and inclusive economic growth.

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