The Malaysian Trade Union Congress (MTUC) has called on the government to hasten the switch from the minimum wage policy to a living wage policy for the improvement of workers’ livelihoods.
“The minimum wage is the minimum amount that should be paid to a worker for a certain period of work.
“The living wage is an amount that enables workers to provide quality living standards for themselves and their families,” MTUC secretary-general Kamarul Baharin Mansor explained in a statement today.
MTUC was referring to the living wage model, a recommended migration from a 2018 Bank Negara (BNM) study.
Former Bank Negara governor Muhammad Ibrahim said living wages in Kuala Lumpur in 2016 were estimated at RM2,700 for an adult, RM4,500 for couples without children and RM6,500 for couples with two children.
The provision of a living wage should also be commensurate with productivity, and could be a step towards a higher quality of life in Malaysia, he said.
The living wage could also serve as a guide of the income level needed to achieve the minimum acceptable living standard, he added.
MTUC stressed that Malaysia cannot afford to lag behind other Asean countries, and this study will enable it to catch up.
"MTUC is confident that BNM’s study is neutral for the country's progress and prosperity.
“BNM can collaborate with the Human Resources Ministry to produce a living wage recommendation," Kamarul (above) said.
Moreover, MTUC mentioned that it has received multiple complaints from workers who have been employed for over three years but haven't received salary increments that would place them above the minimum wage threshold.
This situation exposes the inadequacy of the minimum wage policy in protecting the salaries of mid-level workers, the group emphasised.
To address these issues, MTUC proposed that the government establish a committee to study the living wage policy as soon as possible.
The group said it is willing to collaborate with the government to enhance the country's progress and prosperity.
“The government needs a high level of political will to reform wages.
“MTUC will work together with the country's leadership to improve the country.”
Studying living wage
On March 2, Human Resources Minister V Sivakumar told the Dewan Rakyat that the government was in the midst of studying BNM’s proposal on the implementation of a living wage.
He said a more comprehensive analysis of the progressive wage model is required to align it with the prevailing economic and labour situation in Malaysia.
The implementation of a minimum wage and a progressive wage aims to provide protection to workers who earn the lowest salaries, he added.
Moreover, the minister highlighted that the Labour Department had carried out 17,565 statutory inspections on employers from May to December 2022 concerning the implementation of the minimum wage order.
Out of these inspections, 2,448 compliance recommendations have been issued for violating the order, he noted. - Mkini
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