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Monday, January 17, 2022

Putrajaya reminded of BN-Harapan promise to increase minimum wage

A coalition of pressure groups has urged Putrajaya to increase the minimum monthly wage because both BN and Pakatan Harapan had made such promises during the 2018 elections.

The Labour Law Reform Coalition (LLRC) said Putrajaya could begin by increasing the minimum wage to RM1,400 in February this year and then RM1,500 in February the next year.

"Given that both Harapan and BN made promises during the 14th general election to increase the minimum wage to RM1,500 by the end of their five-year term, the (current) government, which consists of BN component parties and a former Harapan component party, should materialise the election promises," said LLRC.

According to Section 23 of the National Wages Consultative Council Act 2011, the government can set the minimum wage by means of the federal gazette.

Under Section 25 of the same law, the council "shall" review the minimum wage every two years.

The LLRC pointed out that the previous order took effect on Feb 1, 2020, and hence, a new one can be set on Feb 1 this year.

Even with Section 25, argued LLRC, there were no laws stopping the government from reviewing the minimum wage as often as it wants.

Currently, the minimum wage for 56 areas governed as councils or municipal areas is required to be set at RM1,200. Other non-city areas will have a minimum wage of RM1,100.

The minimum wage was first introduced in 2013 and was set at RM900 for Peninsular Malaysia and RM800 for East Malaysia.

In 2016, the rate was raised to RM1,000 for Peninsular Malaysia and RM920 for East Malaysia.

During the Harapan administration, the minimum wage was raised twice - to RM1,100 in 2019 and the current rate described above in 2020.

The LLRC claims to have the support of 58 groups, including trade unions and groups representing workers. - Mkini

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