Ideas proposes new living wage tax credit for companies

PETALING JAYA: Corporate tax incentives to encourage companies to pay above minimum wage are among the budget proposals by the Institute for Democracy and Economic Affairs (Ideas).

Ideas director of research Laurence Todd said the proposed Living Wage Tax Credit (LWTC) would give tax deductions to companies which pay employees up to RM2,500 instead of the current minimum wage of RM1,100.