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Malaysian workers saw meager RM61 annual pay rise since 2013, union says
🇲🇾 Malaysia /Economy & Trade

Malaysian workers saw meager RM61 annual pay rise since 2013, union says

From Utusan Malaysia · () Malay

Translated from Malay and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified Context piece
  • Malaysian private sector workers have experienced an average annual wage increase of just RM61.50 over 13 years since the minimum wage policy began.
  • The Malaysian Trade Union Congress (MTUC) argues this justifies raising the minimum wage to RM3,100 monthly, citing rising living costs and inflation.
  • Employer groups deem the proposed 82% increase impractical, while the MTUC insists it's necessary for workers' income to remain relevant.

Private sector employees in Malaysia have seen their wages stagnate, with an average annual increase of a mere RM61.50 over the past 13 years. This stark reality has fueled the Malaysian Trade Union Congress's (MTUC) demand to raise the minimum wage to RM3,100 per month.

Kamarul Baharin Mansor, MTUC's Secretary-General, highlighted that the minimum wage, initially RM900 in Peninsular Malaysia and RM800 in Sabah and Sarawak in 2013, is set to reach RM1,700 by February 2025. He argued that this increase is insufficient given the rising cost of living and inflation, which averages 1.8% to 2% annually. "The increase in income has not kept pace with the rising cost of living," Kamarul stated.

The increase in income has not kept pace with the rising cost of living.

— Kamarul Baharin MansorExplaining the need for a higher minimum wage due to inflation and rising costs.

He further explained that over 13 years, the minimum wage has only climbed from RM900 to RM1,700, averaging about RM61.50 per year. "Therefore, any new minimum wage rate must be reconsidered, especially the RM3,100 proposal, to ensure workers' income remains relevant to current economic changes and living costs," he told Utusan Malaysia.

Therefore, any new minimum wage rate must be reconsidered, especially the RM3,100 proposal, to ensure workers' income remains relevant to current economic changes and living costs.

— Kamarul Baharin MansorEmphasizing the necessity of the RM3,100 minimum wage proposal.

In contrast, the Malaysian Employers Federation (MEF) has labeled the proposed RM3,100 minimum wage as unreasonable and impractical, representing an 82% jump from the current RM1,700. The MEF's stance comes after the MTUC proposed the RM3,100 figure as a living wage benchmark, considering current economic realities.

Kamarul countered that employers should have prepared for minimum wage adjustments, as such reviews are mandated every two years by law. He also addressed common employer concerns like factory closures, job cuts, and cost pass-throughs, stating that company losses are influenced by various factors beyond wages, including technological changes, product quality, demand, and global strategies. He believes that while a new rate might reduce short-term profits, it can lead to long-term benefits like improved employee retention and a higher quality workforce.

The proposed increase from RM1,700 to RM3,100 per month is unreasonable and impractical.

— Malaysian Employers Federation (MEF)Stating their opposition to the proposed minimum wage hike.
About this summary

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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