HR Minister Wants More Firms to Pay Higher Minimum Wage
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Human resources minister M Saravanan said that despite the fact that it is not yet mandatory, some companies are already paying their employees the planned minimum wage of RM1,500.
While the government is still evaluating and finalising the proposed minimum wage, Aeon Co (M) Bhd and Westports Holdings Bhd have already put it in place, he added.
Saravanan thanked the two companies and encouraged others to follow in their footsteps.
Setting a great example to other companies
"I would like to encourage more firms to follow Aeon and Westports' lead and pay their employees more than the current minimum wage of RM1,200," he said in a statement today.
Even in the face of the existing economic predicament caused by the Covid-19 outbreak, he stated the two enterprises have set a great example when it comes to their employees' problems.
Aeon had already declared that it would raise its employees' minimum salary on January 1st. According to its website, it employs 11,000 people across 202 stores and other business outlets.
Separately, Westports, a port operator and cargo management business, stated in a statement last month that its net profit increased by 23.5 per cent to RM808.22 million in the financial year ended December 2021, up from RM654.49 million the year before.
Supermax Corporation Berhad likewise increased its minimum salary to RM1,400 across all categories earlier this year.
Saravanan previously stated that a minimum salary of "approximately RM1,500 per month" would be imposed by the end of the year. He said that the proposal is seeking Cabinet approval.
AEON Malaysia earlier this year increased the minimum wage of its employees from RM1,200 to RM1,500.
Still recovering from the pandemic
On the other hand, the Malaysian Employers Federation claims that the proposed rise will harm businesses that are still recovering from the recession.
According to its president, Syed Hussain Syed Husman, most firms are unable to adopt the proposed new minimum wage, as they are still recovering from the economic blow caused by the epidemic and floods at the end of last year.
In Malaysia, the latest minimum wage rate in City Council and Municipal Council districts is RM1,200 per month. Meanwhile, in other parts of the country, the minimum wage is RM1,100.
The minimum salary was last raised from RM1,100 to RM1,200 per month in February 2020.
Fresh graduates worst hit by the pandemic
Graduates under the age of 24 have already seen their median earnings decline by 25%, from RM2,066 per month in 2019 to RM1,550 per month in 2020, putting them at risk of being the most vulnerable group as the country debates raising the RM1,500 minimum wage.
According to the Department of Statistics Malaysia (DoSM), the average graduate income in Malaysia fell 10.6% in 2020, from RM5,020 to RM4,489 per month, while the median pay fell 11.3%, from RM4,300 to RM3,796 per month.
This data indicates that fresh graduates have had the greatest income decrease, with their monthly wage slashed by 25%, the greatest among all age categories.
Source: FMT