PETALING JAYA: The RM1,500 minimum wage is no longer reasonable due to the high cost of living, says the Malaysian Trades Union Congress (MTUC).
Its acting president Matkar Siwang said RM2,000 would be a more reasonable figure.
Matkar said the government cannot delay the announcement of the new minimum wage rate, adding that anticipation of the new rate has caused anxiety among private sector workers.
“The new minimum wage rate should take into account various factors, including the rising cost of living, which is increasingly burdening lower-income workers.
The current minimum wage of RM1,500 is unreasonable and irrelevant due to the rising cost of goods,” he said in a statement yesterday.
The current Minimum Wage Order was enforced in May 2022.
Prior to that, the minimum wage was RM1,200.
Human Resources Minister Steven Sim reportedly said that the National Wages Consultative Council is currently in the process of preparing a report on the proposed minimum wage change to be submitted to Cabinet.
Steven said the council, which consists of representatives of employers, workers and the government, held a meeting at the end of June to discuss the matter.
Matkar added that the financial capability of lower-income workers was especially distressing as they face the future without a salary increase.
“The MTUC is awaiting the announcement of the new minimum wage rate, which should be enjoyed by workers on May 1.
“The new minimum wage rate could uplift private sector workers and help balance income and expenses.
“A worker earning the current minimum wage will bring home a net income of RM1,330 after mandatory deductions.
“Workers are forced to work continuously, whether through overtime or taking on side jobs after regular working hours, to increase their income,” he said, adding that the government can refer to several studies that have been conducted to determine the new minimum wage rate.
“Several studies, such as those by Bank Negara, Unicef and others, showed that a suitable wage would be over RM2,000,” said the MTUC chief.
