RM1,700 Minimum Wage is MOST Disappointing.
According to the New Straits Times March 28, 2018, "In its 2017 Annual Report, the central bank said based on a study in 2016, the living wage in Kuala Lumpur ranges from RM2,700 a month for an individual, to RM6,500 monthly for a couple with two children.
So, a reasonable MINIMUM WAGE sufficient for a decent life should be more than RM2,700(but note that was what was needed in 2018 - now certainly much more???)
Is there going to be DISCRIMINATION amongst workers, as Prime Minister Anwar Ibrahim said recently that minimum wage for public sector workers will be set to RM2,000?
The planned salary increment will come under what Anwar called a new "human resource framework" that would raise the minimum pay for all public sector workers to RM2,000, among others.
If PM Anwar is setting minimum wage of Public Sector workers at RM2,000, he should also set the Minimum Wage of all other workers at the same RM2,000 or really higher - as public sector workers receive all kinds of other benefits too..pensions, healthcare benefits, housing, etc. All WORKERS contribute to the well-being of Malaysia - so why is he discriminating against all other workers??? Should NON-PUBLIC SECTOR workers consider kicking out a government that DISCRIMINATES?
Now, we have previously suggested that MINIMUM WAGE should vary according to regions, as the cost of living is different. For Klang Valley, it is higher than some rural areas... In Sabah/Sarawak it also is high. So, reasonably a different MINIMUM WAGE based on region of work/living?
Next problem - Many smaller businesses, like market vendors, small shops in rural towns barely survive - they simply cannot afford to pay their workers MINIMUM WAGE - now, for the owner/operator, they should each at least be entitled to take home annually RM50,000 each, so, really businesses that have less than RM100,000 PROFIT annually should not be required to pay Minimum Wage at the same rate - a lower rate is preferred. (Or maybe a requirement of some sort of 'profit sharing' scheme in lieu with Minimum Wage). We looking at smaller shops in small towns, rural areas, fishermen, farmers, etc >> consider their income/profits - if NOT, the government's Minimum Wage will kill off these small business.
Minimum Wage should thus be imposed on the all the BIG company employers, GLCs, TNC, Franchise Business, etc - and realistically, it can be HIGHER MINIMUM WAGE of RM2,500 at least.
During the presentation of Budget 2025 on Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also the minister of finance, announced that the minimum wage would rise to RM1,700 per month, effective Feb 1, 2025, and Aug 1, 2025, for employers or small entrepreneurs with fewer than five employees.
So, the current plan to impose on ALL employers is FOOLISH - unless Anwar Ibrahim's government wants to kill of these small businesses owned by Malaysians. Fruit sellers, vegetable sellers, sundry shops, etc... they all need workers.
MINIMUM WAGE must be increased as and when required - if cost of living goes up, immediately increase Minimum Wage.
Employers have been cautioned against using the new minimum wage rate as the starting salary for all employees, including graduates, said Human Resources Minister Steven Sim Chee Keong.
Well, that is what happened - many BIG employers too decided to simply use the Minimum Wage ... Before the Minimum Wage, wage was determined by market forces - and, in fact it was higher for some kind of work/jobs - not all.
Employers need workers - and workers could demand higher wages - but the Malaysia sabotaged Malaysian workers by allowing in cheap labour in the form of migrant workers. When you can get cheap migrant workers, why pay local employees a higher wage?
What is shocking was that even government owned companies, GLCs and companies that get government contracts also just paid the 'MINIMUM WAGE" - the government could have ensured that these companies paid HIGHER wages - or better wages.
How many government owned companies, GLCs and companies that get government contracts use the 'minimum wage rate as the starting salary for all employees' Minister Steven Sim?
ONE strategy is to impose a HIGHER MINIMUM WAGE for manual work, difficult work - we need to attract Malaysian workers to take on these jobs. A HIGHER MINIMUM wage for them 3D Jobs will attract Malaysian workers?
To protect Malaysian Workers, there was a QUOTA for use of migrant workers at the workplace - well, after the QUOTA is filled, employers to get their LOCAL Workers may have to pay higher wages to local workers ....BUT, what did the Malaysian government do? Allowed schemes to allow EMPLOYER to use more than the quota of migrant workers... They stayed within their QUOTA with regard their OWN registered Employees, and started using outsourced workers from other 'Employer'/Contractors - Hence, when we look at the workforce at a workplace - how many migrant workers...how many local workers?
Minister seems to be concerned about University Graduates - when he must treat all WORKERS the same. Skill, experience and even age may be a factor to consider different wages - but not educational qualification.
EMPLOYMENT SECURITY - abolish short-term contract employment. Require all workers to be employed as REGULAR EMPLOYEES - that will provide employment security for Malaysian workers... but the Minister is still not doing that. So, when worker's contract ends after one year or less, employers still can NOT renew the contract, and simply hire a new worker paid at the Minimum Wage. Even MPs have employment security of 4-5 years, but not most workers.
ALL workers at a workplace must be employees of the owner/operator of the workplace. Section 2A Employment Act says that all it requires is a Minister's ORDER - no need to go to Parliament..
(1) The Minister may by order prohibit the employment, engagement or contracting of any person or class of persons to carry out work in any occupation in any agricultural or industrial undertaking, constructional work, statutory body, local government authority, trade, business or place of work other than under a contract of service entered into with-
(a) the principal or owner of that agricultural or industrial undertaking, constructional work, trade, business or place of work; or
(b) that statutory body or that authority.
(2) Upon the coming into force of any such order, the person or class of persons employed, engaged or contracted with to carry out the work shall be deemed to be an employee or employees and-
(a) the principal or owner of the agricultural or industrial undertaking, constructional work, trade, business or place of work; or
(b) the statutory body or local government authority,
shall be deemed to be the employer for the purposes of such provisions of this Act and any other written law as may be specified in the order.
This would prevent the employer from using non-employee workers ... and avoiding local-migrant employee quota requirement, will allow employees to come together and fight for worker rights....So, why is Minister Steven Sim making this ORDER that will benefit all workers, especially Malaysian workers and their unions.
Today, the reality will show that number of actual EMPLOYEES is very small - as the employer use many workers of 'other employers'(Contractors for Labour) - which allows for DISCRIMINATION of workers at the same workplace doing the same work. It also WEAKENS the workers' capacity to demand better worker rights...?????
Many other things to consider ...
Minister: RM1,700 minimum wage is the lowest, not target salary for all new hires
BANDAR PERMAISURI, Oct 21 — Employers have been cautioned against using the new minimum wage rate as the starting salary for all employees, including graduates, said Human Resources Minister Steven Sim Chee Keong.
He explained that the increase in the minimum wage from RM1,500 to RM1,700, as announced in Budget 2025 on Friday, is intended as a basic wage for workers with lower academic qualifications and skills, including those in the 3D (dirty, dangerous, and difficult) sector.
“It is advisable to offer salaries that reflect employees’ skills and academic qualifications. The minimum wage should not serve as the benchmark for starting salaries for all workers. This adjustment in minimum wage is a strategy designed for the most basic workers, especially the 4.35 million individuals currently earning below RM1,700.
“By aligning salaries with academic qualifications, job roles, and skills, companies can benefit as well. If employees are not compensated fairly, we risk losing talent and face challenges in attracting skilled manpower,” he said to reporters, following the groundbreaking ceremony of the Social Security Organisation (Socso) Eastern Region Rehabilitation Centre, in Merang, today.
During the presentation of Budget 2025 on Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also the minister of finance, announced that the minimum wage would rise to RM1,700 per month, effective Feb 1, 2025, and Aug 1, 2025, for employers or small entrepreneurs with fewer than five employees.
Sim emphasised that the wage adjustment period provided was both reasonable and sufficient, urging employers to comply with the established guidelines.
He encouraged anyone, particularly workers aware of labour law violations, including those related to the minimum wage, to report such instances to the ministry, specifically to the Department of Labour, so that appropriate actions can be taken.
He clarified that the increase in the minimum wage rate is not intended to burden employers. Instead, it aims to enhance employees’ purchasing power, which will indirectly generate economic benefits for local entrepreneurs and small businesses.
Regarding the Socso Eastern Region Rehabilitation Centre, expected to be completed in 2027, Sim said that it aligns with the ministry’s 3K aspirations, which focus on enhancing worker welfare, improving skills, and achieving greater productivity.
Meanwhile, the rehabilitation centre, with a construction cost of RM571.8 million, will boast 315 beds and accommodate 400 to 500 patients daily. It will offer a range of treatment services, including medical rehabilitation utilising Neuro-Robotic and Cybernics rehabilitation, as well as innovative therapies like Thalassotherapy, which uses seawater for therapeutic purposes.
Additionally, treatment based on the hippotherapy method, which involves using horses as therapeutic instruments to aid in the physical, mental, and cognitive recovery of patients, will also be available.
Sim noted that the establishment of this third rehabilitation centre, following those in Melaka and Perak, is particularly relevant, given that records show that 15 to 20 per cent of the total cases received at the existing rehabilitation centre are from the east coast states. — Bernama, Malay Mail, 21/10/2024
On Labour Day, PM Anwar announces plan to give civil servants ‘record’ increment
PUTRAJAYA, May 1 — Prime Minister Datuk Seri Anwar Ibrahim announced today the government’s plan to raise the salaries of civil servants “to record level” next year, a move that is expected to cost taxpayers RM10 billion more on top of existing spending for emolument.
The salary review will be the first in 12 years, which Anwar announced at the 2024 Labour Day celebration with mostly civil servants and representatives from government-linked firms here.
The prime minister described the increments as “long overdue” to pre-empt criticism. The Malaysian government has long been criticised for its bloated civil service, whose emolument often rack up more than a third of federal budgets.
"There will be those who criticise, but I say when was the last time we had a (salary) review? If they question, ask them how much they are earning," Anwar said in a speech delivered to staff from various ministries and members of the Congress of Unions of Employees in the Public and Civil Services (Cuepacs).
The planned salary increment will come under what Anwar called a new "human resource framework" that would raise the minimum pay for all public sector workers to RM2,000, among others.
The highest increment rate was 13 per cent, but the prime minister said the new increment will be "much higher". The current minimum income, which includes salary and fixed allowances, is RM1,795 per month.
Anwar vowed to raise pay as part of his pledge to alleviate cost of living pressure when he took office in 2022, and his government has managed to stabilise inflation from its peak record that same year.
But low pay, compounded by a weaker ringgit, continues to weigh on buying power as the majority of industries appear reluctant to move away from the decades-long labour-intensive low-pay operating model that has allowed companies to widen profit margins by suppressing overhead costs.
Earlier this year Minister of Economy Rafizi Ramli, Anwar's deputy in PKR, the anchor party of the ruling Pakatan Harapan coalition, announced a plan to introduce a "progressive wage policy" as a key measure to incentivise firms to raise salaries through tax breaks and subsidies.
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