Retrenched workers may claim six months' benefits under EIS

Retrenched Malaysian workers under the new RM2,000 wage law may be eligible for up to six months of financial aid through the Employment Insurance System (EIS), the Dewan Rakyat was informed. Economy Minister Akmal Nasrullah Mohd Nasir informed the House that affected employees, covered by the scheme, could claim benefits, such as a job-search allowance, if their employers laid off staff during the transition to higher wage costs.

He highlighted that the government had exempted micro, small, and medium enterprises (MSMEs) with annual revenue under RM50 million from the wage hike, allowing them time to modify their business models. The Labour Department would ensure compliance, with workers able to complain against employers not adhering to the new wage requirement.

The government plans to devise a system considering job responsibilities, qualifications, and productivity, addressing concerns that higher minimum wages for graduates might deter employers from hiring them. Wage increases should be paired with workers' skill development, technology adoption, and continuous training, since wage growth hasn't matched productivity gains.

The Progressive Wage Policy, aiding around 51,000 workers across over 4,000 employers, is also under review to tackle structural issues causing stagnant wage growth. The government aims to boost workers' compensation as a percentage of GDP from 33.9% to 40% by 2030. To curb price hikes, the government will tighten enforcement under the Price Control and Anti-Profiteering Act, expanding affordable sales programs like 30,000 Jualan Rahmah Madani programs and 5,000 Jualan Agro Madani programs, each with a budget of RM700 million and RM50 million respectively.