Minimum wage set based on discussions with various parties, says Saravanan

NILAI: The monthly minimum wage of RM1,500 a month was not a rash decision but was determined after discussion with various parties, Human Resources Minister Datuk Seri M. Saravanan (pic) said.

He said the setting of the minimum wage also involved discussions with the National Wage Consultative Council (MPGN) and requires the approval of the prime minister as well as the Cabinet.

"Currently, we can see that the private sector wage rate is lower than that of government departments so they are being raised accordingly.

"The economic slowdown should not be used as an excuse (not to increase minimum wage) because we need to increase cash flow to revive the economy and take care of the people's wellbeing," he told reporters after officiating the Federation of Accredited JPK Centres Malaysia (FeMAC) convocation ceremony here on Saturday (Feb 12).

Saravanan said in the past three years, the minimum wage rate had not been implemented and his ministry had not made a sudden decision, instead it was based on the aspirations of the people.

"In the current situation, we need to increase cash flow at lower levels so that the economy recovers.

"As a minister, I agree with this view and it is time for our country to implement the RM1,500 minimum wage...this decision will be determined by the Cabinet," he added. - Bernama