MTUC proposes RM3,100 as new minimum wage

KUALA LUMPUR: The Malaysian Trades Union Congress (MTUC) has suggested a RM3,100 monthly wage as a benchmark for the upcoming minimum wage, due to escalating living expenses. MTUC secretary-general Kamarul Baharin Mansor stated that this figure should be factored into the review of the minimum wage to account for the increasing costs of essential items such as food, housing, transportation, and other necessities.

He further advocated for broadening the wage structure to incorporate middle-income workers, ensuring their salaries correspond to their skills, education, and work experience. This move would alleviate skill mismatch, facilitate the attraction of high-quality talent by companies, and promote productivity and wage growth, he said in a recent statement.

Kamarul Baharin expressed satisfaction with Human Resources Minister Datuk R. Ramanan's announcement of the government's intent to review the minimum wage. Under the National Wages Consultative Act, the minimum wage must be reviewed biennially. With roughly five months remaining until the current review period concludes, he anticipated the new rate would be announced soon.

Post the February 2025 increase, the subsequent minimum wage is projected to commence in February 2027. Delays in this process could exacerbate financial strain on workers amidst surging costs of goods, he warned. Kamarul Baharin noted that certain workers were still earning the existing minimum wage of RM1,700, despite possessing a decade of service, owing to the lack of a comprehensive wage structure.

He stated that MTUC stood ready to collaborate with the government through the National Wages Consultative Council, offering input on the new minimum wage. Two days prior, Ramanan announced that the minimum wage was being assessed to decide whether to retain or raise the current RM1,700 monthly rate.