By Mohd Ashraf Syafiq Mazlan
PUTRAJAYA, Oct 18 (Bernama) -- The increase in the minimum wage to RM2,000 a month from June 2027 is expected to help low-income workers cope with rising living costs, while a proposed RM2,500 starting basic salary for graduates and semi-skilled workers could pave the way for better pay structures.
Universiti Putra Malaysia (UPM) Faculty of Human Ecology dean Prof Dr Mohamad Fazli Sabri said the minimum wage increase and the introduction of the starting salary framework were important steps towards improving workers’ financial well-being, particularly among young people.
Mohamad Fazli, who is also a personal financial planning expert, said economic growth must translate into incomes that enable people to meet their basic needs, build savings and plan for the future.
“However, the effectiveness of these measures must be assessed based on actual improvements in workers’ lives, including their ability to reduce reliance on debt,” he told Bernama.
He said the RM300 increase in the minimum wage, or about 17.6 per cent, could help low-income workers cover expenses such as food, transport and outstanding bills.
“Although the increase may seem small to some, it could provide breathing space for those who have long had to choose between equally important needs,” he said.
Mohamad Fazli also called for the implementation of the policy to be monitored to ensure that wage increases were not offset by cuts to allowances or a deterioration in employment conditions.
“The government must clarify the scope and mechanisms, while employers should provide transparent career-based pay progression. Educational institutions, meanwhile, need to strengthen job-related skills and practical financial education.
“To me, the measure of success is whether workers have money left after meeting their basic needs, can cope with emergencies without borrowing and feel more confident about their future,” he said.
Meanwhile, National Wages Consultative Council chairman Tan Sri Zainal Rahim Seman described the introduction of the new minimum wage and starting salaries for graduates and semi-skilled workers as an important step towards improving workers’ welfare.
He said the private sector needed clearer salary guidelines to reduce disparities in wage rates between states and local authorities.
“We have seen public sector salaries move to a different level. The private sector therefore also needs government guidelines to establish reasonable wage rates.
“Otherwise, we will face wage disparities between states and between local authorities,” he said.
For those preparing to enter the workforce, the proposed measures could help ease financial pressures amid rising living costs.
Universiti Utara Malaysia final-year student Nurul Aisya Syaqila Mazlan, 22, said the minimum wage increase and higher starting salaries were important to ensure workers, particularly young people, earned enough to meet their basic needs.
“The increase is very important to me because the cost of living, including food, transport and accommodation, continues to rise.
“For young people entering the workforce, higher salaries can help cover basic expenses, ease financial pressure and improve their quality of life,” she said
On Friday, Human Resources Minister Datuk Seri R. Ramanan said reforms to the wage framework under Budget 2027 reflected the government’s aim of developing a highly skilled, high-income workforce with adequate protection, in line with the country’s aspiration to move towards a high-value economy.
He said the ministry (KESUMA) was preparing salary guidelines based on qualifications, skills and job types, with implementation targeted for June 2027 before being strengthened through future legislative amendments.
“The guidelines on starting basic salaries based on the Malaysia Standard Classification of Occupations (MASCO) will provide a more comprehensive reference for starting salaries according to occupation and qualification level,” he said.
KESUMA is also refining a mechanism to monitor wage payments through the e-Wages module to facilitate monitoring and strengthen enforcement of labour laws.
“Overall, KESUMA’s focus is not merely on setting a salary figure, but on developing a clearer wage structure based on occupations, qualifications and skills.
“This is part of the government’s efforts to address wage compression, increase the value of jobs and support the country’s transition towards a high-value economy,” he said.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027, announced that the government had agreed to raise the minimum wage from RM1,700 to RM2,000 a month from June 2027, a move expected to benefit more than four million workers.
He said micro, small and medium enterprises with annual sales below RM50 million would be exempt from implementing the new rate to give them time to adjust their business models.
Anwar also announced a starting basic salary of RM2,500 a month for semi-skilled occupations and graduates as an initial step towards reforming the country’s wage framework.
-- BERNAMA