Govt must consider cost of living in minimum wage review, says UNI-MLC

KUALA LUMPUR: The Malaysian government's ongoing review of the Minimum Wages Order 2024 must account for the increasing cost of living, according to UNI Malaysian Labour Centre (UNI-MLC) president Datuk Mohamed Shafie. He stated that fluctuations in food, housing, transportation, and education costs directly impact workers' ability to maintain a decent standard of living, particularly for lower-income groups.

Shafie emphasized that the government's review of the minimum wage order is crucial to determine if the current rate remains relevant to workers' needs and current economic conditions. For workers, wages are about more than a number on a paycheck; the real question is whether their income is sufficient to meet basic family needs.

When living costs change, workers' income loses value, and wage rates must be reviewed periodically to protect workers' welfare and purchasing power. Human Resources Minister Datuk Seri R. Ramanan has said the government is reviewing the RM1,700 monthly minimum wage, taking into account indicators such as the Poverty Line Income, median wage, Consumer Price Index, labour productivity, and unemployment rates.

Shafie highlighted that workers contribute significantly to the country's economic growth and development, and their welfare should be a priority in labour market policy. He stressed that workers should not be forced into a situation where most of their income is spent on necessities, leaving little room for emergencies, children's education, savings, or dealing with unexpected circumstances.

The true meaning of workers' welfare, according to Shafie, is not about luxury but the ability to live a decent life through their own labor.