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Minimum Wage Expected To Be Raised To RM1,500 Before The Year Ends

Minimum Wage Expected To Be Raised To RM1,500 Before The Year Ends

The last time the minimum wage was raised to RM1,200 was in February 2020.

Adeline Leong

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The new minimum wage for Malaysian employees is expected to be officially raised to RM1,500 per month before the year ends, as reported by Berita Harian.

Human Resources Minister Datuk Seri M Saravanan said he’s positive that raising the minimum wage this year can be realized but it needs to get approval from the Cabinet first.

He added that the minimum wage should be raised as soon as possible, but the decision still lies in the hands of the Cabinet.

Previously, the minimum wage was raised from RM1,100 to RM1,200 per month on 1 February 2020 during the announcement of Budget 2020.

Increasing the minimum salaries of workers will help them increase their Employees Provident Fund (EPF) savings so that they’ll hopefully be able to retire comfortably in the future.

According to New Straits Times, the Malaysian Trades Union Congress (MTUC) also urged the government to raise the minimum monthly cost of living allowance (Cola) to RM300 for all workers.

The request to raise the minimum wage is in line with the National Wage Consultative Council Act 2016, which requires the minimum wage to be revised every two years.

Saravanan acknowledged that Malaysia was slow to decide on the matter, and the ministry is doing what it can to hasten the process.

He pointed out that while the government didn’t raise the minimum wage for some years now, some private companies took the initiative to pay their employees a little more.

The employees receive extra perks and help such as lodging for workers and extra allowances depending on the employer.


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