When the Malaysian Government started the Progressive Wage Policy, it fixed the MINIMUM Wage of 380 categories of workers - the entry-level salary. It ranges from RM1,810 for Clerical Support Workers of Pawnbrokers and Money Lenders to RM4,675 for Professional Translators, Interpreters and Other Linguists. For Primary School Teachers it was RM3,630. For Lawyers, it was RM3,505. See KINIGUIDE for the different categories of work... and the wages the Malaysian government set. Should these not be MINIMUM Wages set for these categories of workers - this 380 categories of workers?
Therefore, WHY is our Prime Minister now talking of a Minimum Wage of RM1,700 that will start in February 2025 for some, and others by August 2025?
This is MOST CONTRADICTORY - the Minimum Wage should be the same as stated in the Progressive Wage policy for the stated jobs. Maybe, Anwar's stated MINIMUM WAGE only applies for those jobs not covered by the Progressive Wage document by the Malaysian Government???
Employers that raise the wages to the amount stated in the Progressive Wage document, the government will give RM100-RM200 to the employer per worker - as an incentive, but just for a certain number of employers...ODD why the government is giving money to employers to raise wages of their workers?
The PWP pilot project, which opened for registration in June, aims to increase the wages of Malaysian employees earning between RM1,500 and RM4,999.
The project covers local workers in five key sectors, including construction, manufacturing, wholesale and retail trade (including motor vehicle and motorcycle repair), information and communication, and professional, scientific, and technical activities.
Under the project, selected companies will receive incentives, with a maximum of RM200 per month per employee for entry-level workers (those who have been with their current company and position for less than a year). Employees who have been in the company for over a year will receive a maximum of RM300 per month per employee.
As it is, the Malaysian Minimum Wage must be HIGHER than RM1,700 - as it is near impossible for many people living in certain areas in Malaysia, which has a HIGHER cost of living, to survive with that amount. So, where will they get the EXTRA monies. To suggest that they take on 2nd and 3rd jobs, is ABSURD and it violates the long fought for right to Eight hours each for work, leisure and sleep.
MPs must ask themselves on what is the monthly income they need to SURVIVE - they now earn about RM40,000 plus (including the various additional allowances/benefits) - should we as a practice amend the law so that the PEOPLE's REPRESENTATIVE shall not earn more than 10 Times the Minimum Wage they expect the people to have?
As per the Members of Parliament (Remuneration) Act 1980, an MP's monthly salary, including their allowances, could work out to an average of RM25,700.
Additionally, MPs can claim various allowances or subsidies for specific purposes. For instance, they receive RM400 per day for attending parliamentary sittings and a one-time allowance of RM1,000 every three years to purchase black-tie attire.
Below is a list of allowances they qualify for:
• Salary: RM16,000 per month
• Parliamentary sitting attendance: RM400 per day
• Government agency meetings/ workshops attendance: RM300 per day
• Entertainment allowance: RM2,500 per month
• Special payment for non-administration MP: RM1,500 per month
• Fixed travel allowance: RM1,500 per month
• Fuel allowance: RM1,500 per month
• Toll allowance: RM300 per month
• Driver allowance: RM1,500 per month
• Handphone purchase: Up to RM2,000 every two years
• Phone bill allowance: RM900 per month
• Purchase of computer: Up to RM6,000
• Black-tie attire subsidy: RM1,000 every three years
• Ceremonial attire allowance: Up to RM1,500
• Warm clothing allowance
• Free vehicle license
• Official trips - Business class air travel
• Official trips - First-class rail travel
• Domestic duties exceeding 32km from home: Hotel allowance up to RM400 a night
• Daily stipend during business trips: Domestic - RM100 a night/ International - RM170 a night
• Food allowance when overseas: RM340 a night
• First-class single-room ward in government hospitals: Free
MPs also become eligible for a pension after completing 36 months of reckonable service and upon reaching 50.
Should we NOT cut our MP's allowance - cut Parliamentary Attendance Allowances, Cut 1st Class Travel - make it economy travel ...when the people cannot afford, why should MPs be allowed to enjoy a higher standard of living?
MINIMUM WAGE must realistically be enough for workers in Malaysia to live - home rental/nonthly loan payment, food, transport cost, cost of utilities(phone/internet,electricity, water,sewage,...), transportation, etc..
In Klang Valley, is it possible to live on RM1,700 per month > remember with minimum wages of RM1,700 (after minus EPF and SOCSO contribution - the take home pay is just 89% or less of RM1,700).
In my opinion - different MINIMUM Wages for different regions(depending on cost of living in that particular region)
HIGHER Minimum Wage for Manual Work and 3D work - as it is more difficult work - and higher wages will attract more local workers too..
MINIMUM WAGE just for employers who have annual profits of more than RM50,000 - RM100,000. As these profits sustains the livelihoods of these sole proprietors, partners and is money needed for some business development.
Special exemption for small businesses (sundry shops, retail shops, market vendors, etc ) - in lieu of MINIMUM WAGE encourage a income/profit sharing scheme - where owners share profits with workers, as many of these employers currently in small towns and rural areas simply cannot afford to pay their workers RM1,700 without risking going out of business... Should other business models be considered - profit sharing, etc - not simply a model that has paid worker. Some models cater for all the work men's needs - rather than equal wage for equal work...
At the end of the day, this Anwar Ibrahim led government had already declared what they considered just and Fair wages for over 300 categories of work as stated in the 'Progressive Wage' scheme - but then there is PM Anwar suggesting a minimum wage even lower than the lowest progressive wage?
Should we oust Anwar, in favour of Rafizi who seems more realistic and just...???
PM Anwar: Raising minimum wage to RM1,700 shows unity govt’s political will
PUTRAJAYA, Oct 28 — The move to raise the minimum wage rate to RM1,700 reflects the political determination of the unity government, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Minister of Finance, described the decision to raise the minimum wage as bold, noting that waiting for companies alone to decide would prevent any progress.
“If I leave it to the companies, there would be no decision—it’s impossible to reach one that way. So, I discussed it with my friends in the Cabinet. The country is doing well, investments are coming in significantly, and a prosperous nation cannot afford to see this sort of treatment to our workers.
“We are not RM500 or RM3,000, we are going from RM1,500 to RM1,700,” he said at the launch of Putrajaya MADANI Residency Housing Development here today, which was also attended by the Minister in the Prime Minister’s Department (Federal Territory) Dr Zaliha Mustafa and Minister of Housing and Local Government Nga Kor Ming.
The Prime Minister expressed hope that all companies will cooperate in implementing the new minimum wage rates, which will take effect in February next year.
When tabling Budget 2025 last Oct 18, Anwar announced that the government agreed to raise the minimum wage rate from RM1,500 per month to RM1,700 per month which will take effect on Feb 1, 2025.
The government also decided to postpone the minimum wage of RM1,700 for employers with less than five employees for six months.
Regarding the 15 per cent salary adjustment of civil servants for the implementation group in the Civil Service Remuneration Scheme (SSPA) which starts this Dec 1, Anwar said civil servants need to be more responsible for their work.
He said the civil servant salary adjustment would see an increase in salary costs of more than RM10 billion.
Addressing criticisms from some quarters that Budget 2025 lacks mega projects or iconic landmarks, the Prime Minister said, “For me, mega projects are people’s housing, stalls, quality school facilities, and good healthcare.”
He also said that everyone must shift their mindset and embrace a new economic framework focused on fostering fresh and dynamic growth.
“If the economy does not grow, where will we find the funds? I do not underestimate the importance of growth.
“It is essential for civil servants, political leaders, and business people to step up and help small groups succeed, as this will prevent the gap between the rich and the poor from widening,” he said.
Anwar said efforts to eradicate hardcore poverty will be accelerated as there are poor families who cannot afford basic food, baby milk and school uniforms.
“So the government must not delay, it is a
responsibility that needs to be fulfilled. It is not reasonable for a
prosperous country like this, which has recorded growth, has a lot of
revenue, (but) hardcore poverty is high,” he said. — Bernama, Malay Mail, 28/10/2024
Progressive wage pilot project to run at least one year, says minister
KUALA LUMPUR, June 6 — The pilot project for the Progressive Wage Policy is expected to run for at least one year, Human Resources Minister Steven Sim Chee Keong said.
He said the ministry would evaluate and adjust the pilot project in September, focusing on registration procedures and feedback from participants and stakeholders.
“I don’t want to put the cart before the horse and say we’ll stop after one year. Our intention is to continue the Progressive Wage Policy as a mechanism to improve wages for workers in Malaysia
“Even if this pilot project stops, the wage rates set in the conditions are reasonable and sustainable. Most importantly, we want to see the success of this policy as part of our efforts to increase workers’ wages,” he said during the Town Hall meeting on the pilot project here today.
The pilot project is being conducted ahead of the full implementation of the Progressive Wage Policy, which aims to raise wages and achieve a more balanced income distribution.
The Progressive Wage Policy is part of the government’s commitment to reforming the labour market, aiming to increase workers’ incomes in line with productivity gains.
The government targets the participation of 1,000 companies across five sectors in the pilot project -manufacturing, construction, wholesale and retail trade, repair of motor vehicles and motorcycles, information and communication as well as professional, scientific and technical activities.
Sim said to date, about 500 employers have registered and applied for participation in the pilot project since registration opened on June 1, adding that the ministry will soon decide following internal evaluations for employers to join the project.
Based on registered employer statistics from the ASSIST PERKESO portal until May 29, 2024, around 290,659 employers are eligible to apply for cash incentives under the Progressive Wage Policy. This covers an estimated 6,335,971 formal sector workers earning between RM1,500 and RM4,999 per month.
Regarding subsidies for employers participating in the pilot project, Sim emphasised that it’s essential for employers to understand that these subsidies are not a long-term solution to wage issues. Instead, they are aimed at helping companies to be more competitive.
“We provide subsidies or assistance to help our small and medium-sized enterprises (SMEs) thrive.
“When they offer higher wages under the Progressive Wage Policy subsidy, they’ll attract skilled workers, boosting productivity. This growth allows them to sustain competitive wages and create job opportunities even without subsidies,” he said.
Employers seeking more
information on guidelines for implementation and registration for these
incentives can visit https://www.gajiprogresif.gov.my/ — Bernama, Malay Mail, 6/6/2024
Guidelines on wage policy in May
- Nation
-
Saturday, 16 Mar 2024
Pilot project to be carried out between June and August this year
PETALING JAYA: Some light will finally be shed on the proposed Progressive Wage Policy when its guidelines are ready in May.
Economy Minister Rafizi Ramli (pic), who announced the policy in November, said a pilot project will then be carried out between June and August this year.
“Some RM50mil has been allocated to carry out the pilot project, which includes paying incentives to companies that take part in the Progressive Wage Policy,” he said in a written parliamentary reply yesterday.
Rafizi said a cross-ministry and agency effort will be taken to ensure the pilot project runs smoothly.
The progressive wage system will involve those earning a monthly salary of between RM1,500 and RM4,999 who will be upscaled with training to receive higher wages. Employers will also be given cash incentives to cover the additional salaries.
It will involve some four million workers in formal sectors and limited only to Malaysian citizens. Businesses, especially small and medium enterprises are encouraged to participate, but multinational and government-linked companies are exempted from the project, as they are deemed to be paying competitive wages already.
“Four task forces have been established and are now working on refining the implementation mechanism of the policy,” Rafizi said.
The task forces will be responsible for preparing guidelines on the yearly wage increments, developing the enrolment system and companies selected to partake in the Progressive Wage Policy, and also developing the training modules as well as upskilling.
Rafizi said the task force responsible for upskilling and productivity, led by HRD Corporation, was now preparing training modules aligned with the needs of micro, small and medium enterprises.
He said 73% of courses were on non-technical aspects such as management, communication, supervision and linguistics.
“The remaining 27% will be technical courses,” he said, adding that some 2,000 free online courses will also be prepared.
Rafizi was responding to a question by Tan Hong Pin (PH-Bakri) who asked whether the government had prepared guidelines on the progressive wage model and its pilot project.
The Economy Minister presented the White Paper on the Proposed Progressive Wage Policy in Parliament on Nov 30. It was part of an effort to ensure that workers receive higher wages in line with increased productivity.
The document contains
three main mechanisms – voluntary implementation, incentive-based
approaches and government allocation injections, and the responsibility
of workers in enhancing productivity. - Star, 16/3/2024
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