Social Protection Contributors Advisory Association Malaysia (SPCAAM) president J Solomon called on Prime Minister Anwar Ibrahim to follow Indonesia’s lead in providing festive aid to the people.
In a statement today, he cited the Belanjawanku study by the Employees Provident Fund which revealed that individuals in the Klang Valley spend close to an entire month’s salary (over 90 percent) on annual social and festive activities.
“Yet, the escalating cost of living has cast a shadow over these traditions, especially for those in the B40 and M40 income brackets.
“To address this, in 2023, the Selangor government graciously provided a month’s salary as festival aid to its employees – a move that has been both welcomed and celebrated,” said Solomon.
Last year Selangor Menteri Besar Amirudin Shari announced the first phase of the Special Financial Assistance, amounting to one month’s salary or a minimum of RM1,000, for over 20,000 civil servants in conjunction with Hari Raya.
“Following suit, after sustained advocacy by the National Union of Bank Employees (NUBE), banks also provided similar aid to their employees in 2023.
“However, this year’s retraction of this support by the banks, despite prior agreements, is both surprising and disconcerting,” said Solomon, who served as the Malaysian Trades Union Congress secretary-general from 2016 to 2020.
He cited a practice in Indonesia which mandates a month’s salary as festival aid to employees.
“This practice has been especially beneficial to low-income workers, ensuring that the spirit of the festivities remains undiminished by financial concerns.
“Many companies that operate here also operate in Indonesia, including GLCs, and pay one month’s salary to workers in Indonesia.
“It is disheartening to see certain employers in Malaysia withdraw such aid – an act that appears to undermine basic employee benefits and the PMX’s clear directive on the importance of workers’ welfare,” said Solomon.
He claimed it was especially unfair when many of these companies, including GLCs, enjoy substantial profits, a portion of which could be shared as festival aid.
“Anwar’s leadership in emphasising the welfare of workers over mere economic gains is commendable.
“It is now crucial for GLCs to heed this directive, to stand as pillars of support for our workforce, and to inspire the private sector to do the same to provide at least one month’s salary as Festival Aid.
“This will empower B40 and M40 employees to celebrate and strengthen bonds within families and across different faiths, showcasing the true richness of Malaysia,” he said. - Mkini
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