Good news people! The minimum wage will officially be raised to RM1,050 a month next year!
“The government for the first time has agreed to implement a standardised minimum wage throughout the country, including Sabah and Sarawak, which is RM1,050 a month/RM5.05 per hour effective January 1, 2019.”
This indicates an increase in RM50 from the current RM1,000 minimum wage for Peninsular Malaysia, and a RM130 increase from RM920 in East Malaysia, as stated in Malaysia Kini.
The government said the decision was made after considering the recommendations by the National Wage Consultative Council (MPGN) following the review of the 2016 Minimum Wage Order.
Unfortunately, there will be no forms of subsidy given to employers due to the country’s financial constraint.
The government also said the increment is in line with the country’s current economic situation. However, they have to be wary of any drastic salary increase that could lead to problems in the industry and potentially jeopardise the nation’s economic competitiveness.
“As such, it is appropriate to increase the salary gradually in the years ahead, especially for small businesspersons, so they will not close down their operations due to the large increase in costs.”
Furthermore, the Domestic Trade and Consumer Affairs Ministry has been tasked with monitoring the prices of goods and services after the minimum wage is raised to prevent any unethical price hikes from businesses.
The Pakatan Harapan (PH) government has promised to increase and standardise the minimum wage to RM1,500 within five years in its election manifesto.
Well, it’s great that the government is taking steps to improve the people’s welfare by increasing the minimum wage of the nation. Tell us how you feel about this implementation in the comments below!
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