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Malaysia minimum wage review and living wage debate
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2026-08-23 07:51 UTC → 2026-08-27 05:04 UTC ·
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Malaysia minimum wage review and living wage debate
The Malaysian government is reviewing the current minimum wage of RM1,700 per month. month to determine whether to maintain the rate or implement an increase. Human Resources Minister R. Ramanan indicated stated that the National Wages Consultative Council and the National Wages Consultative Council and Gig Council will evaluate economic indicators such as indicators, including inflation, labor productivity, the unemployment rate, and the poverty line to decide whether to maintain or increase line, and the rate. In response to median wage. While the review, ministry has not conducted a specific living wage study, Ramanan noted that Bank Negara Malaysia estimated a living wage for a single person in Kuala Lumpur to be approximately RM2,700 in 2018. Additionally, the 13th Malaysia Plan outlines labor market reforms intended to accelerate wage adjustments. The Malaysian Trades Union Congress (MTUC) has proposed using a living wage of RM3,100 per month as a benchmark for the new national minimum wage. benchmark. MTUC General Secretary Kamarul Baharin Mansor cited the argued that this is necessary due to rising costs of housing, for food, transportation, housing, and basic necessities as justification transportation, noting that since the minimum wage policy began 13 years ago, the average annual increase for this figure. private sector workers has been only about RM61.50. The MTUC also urged the government to implement implementation of a formal salary scale structure to ensure income growth aligns with experience and to prevent long-term employees from remaining at the minimum wage. The MTUC noted that several government-linked investment companies, such as Khazanah Nasional and the Employees Provident Fund, have already implemented living wage policies for permanent staff. In response, the Malaysian Employers Federation (MEF) has described the MTUC proposal as “unreasonable and impractical,” pointing out that a jump from RM1,700 to ensure income growth aligns with experience and education. RM3,100 would constitute an 82 percent increase.
Versions
- 2026-08-27 05:04 UTC Malaysia minimum wage review and living wage debate
- 2026-08-23 07:51 UTC Malaysia minimum wage review
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