KUALA LUMPUR – The increase in the minimum wage is in line with the ministry’s strategic mission, which focuses on welfare, skills, and employee success, said the Human Resources Ministry.
The Human Resources Ministry’s response follows Prime Minister Datuk Seri Anwar Ibrahim’s announcement that the minimum wage will be raised from RM1,500 to RM1,700 per month, effective February 1 next year.
For employers with fewer than five workers, a grace period of six months will be granted and policy will come into effect for them from August 1, 2025, said Anwar, who is also finance minister, at the Budget 2025 tabling in Parliament today.
Minister Steven Sim, in a statement, said that the minimum wage increase also aligns with the ministry’s efforts to improve the income of the working class as a whole.
“We welcome Budget 2025 and the minimum wage increase will raise people’s income by 13.3%, in line with the ministry’s strategic mission.
“However, to give small entrepreneurs time to make adjustments, the enforcement of this new rate for employers with five employees or fewer has been postponed until August 1, 2025.
“We are pleased to inform you that this new rate has been unanimously agreed upon by employer representatives, employee representatives, and the government within the National Wages Consultative Council.
“The Human Resources Ministry would also like to emphasise that the minimum wage should not be used as a starting wage, particularly for graduates and skilled workers.
“In addition to implementing the minimum wage, the government’s strategy to increase workers’ income includes adopting the Progressive Wage Policy as a new measure to reform the labour market, aiming to raise wages in line with increased productivity and experience,” the statement read.
Sim also stated that various upskilling initiatives for employees would be implemented by his ministry, in alignment with guidelines based on the Malaysia Standard Classification of Occupations (Masco).
“Various upskilling initiatives will be actively implemented by the HR Ministry as part of efforts to ensure that salary increases reflect employees’ skills and success.
“The ministry will also, for the first time, publish starting salary guidelines for all job sectors based on Masco. These guidelines will serve as a reference for both employees and employers in determining the appropriate starting salary for a given role.
“As a complement to these efforts, the ministry has also enforced new amendments to laws related to trade unions, effective September 15, which include reducing government restrictions on the establishment of trade unions, thereby empowering workers to seek better wages and working conditions.
“The new minimum wage rate is in line with the government’s efforts to ensure the welfare of workers, especially those on low incomes, in addition to raising dignity and prioritising the people.
“Employers will also benefit from the increased purchasing power of consumers as a result,” the statement added. – October 19, 2024