PUTRAJAYA, Oct 16 (Bernama) -- The setting of the RM2,000 minimum wage rate was based on a comprehensive study of the country’s economic conditions, taking into account the interests of both workers and employers, National Wages Consultative Council (NWCC) chairman Tan Sri Zainal Rahim Seman said.
Speaking to reporters here today, he said studies and engagement sessions with all stakeholders, including academics, had been conducted to ensure that the minimum wage rate set was appropriate.
The study, which began early this year, was aimed at collecting the latest data to serve as a basis for analysis and projections on wage rates for the government’s consideration, he added.
“The government provided guidance, while workers and employers each presented their views.
“We formulated our recommendations by taking into account a middle ground that could benefit both sides. This is about striking a balance in terms of the impact on both workers and employers,” he said.
Zainal Rahim said the minimum wage rate must take into account workers’ need to earn a reasonable income to meet living costs and improve their purchasing power, without overlooking employers’ capacity, particularly that of micro, small and medium enterprises (MSME).
“We hope employers will work together with the Human Resources Ministry to implement this new wage rate,” he said.
He said implementing the new minimum wage would undoubtedly pose challenges, but all parties needed to work together to ensure workers received reasonable wages in line with the cost of living and the country’s economic development.
“What matters is that everyone recognises our collective responsibility and considers where we want our country to go in becoming a developed, high-income nation. We cannot be left behind,” he said.
Previously, Prime Minister Datuk Seri Anwar Ibrahim said the government had agreed to increase the minimum wage from RM1,700 to RM2,000 effective June 2027, benefiting more than four million workers.
Anwar was reported as saying that MSMEs with annual sales below RM50 million would be exempted from implementing the new rate to allow them time to adjust their business models.
He also said the government would introduce reforms to the workers’ income framework, including an initial minimum monthly wage of RM2,500 for semi-skilled jobs and graduate-level employment.
-- BERNAMA