Kindy, daycare operators see fee hikes of up to 20% after new minimum wage

The Malaysian Association of Kindergartens warns that private daycare and kindergarten operators could see fees rise by up to 20% when a new RM2,000 minimum wage takes effect next June. This increase in operating costs, coupled with higher expenses for food, hygiene items, and learning materials, may strain operators' finances and lead to fee adjustments.

Private daycare fees typically range from RM700 to RM1,000 per month, while private kindergarten fees can go up to RM1,500 per month, depending on factors like location, amenities, and service packages. For instance, a RM300 wage increase for a caregiver translates to an additional RM100 per baby when caring for three children at a ratio of one caregiver to three babies, RM60 per child at a ratio of one caregiver to five children, or RM30 per child at a ratio of one caregiver to ten children.

However, this calculation does not include employer contributions or other employment costs. Association of Registered Child Care Providers Malaysia president Norsheila Abdullah warns that the closure of daycare centers could lead to job losses for caregivers and limit parents' access to safe and accessible childcare services. PTM suggests targeted wage subsidies for eligible kindergarten operators and grants for training and safety equipment to help offset higher labor costs.

They also propose fee assistance for families in need, bulk purchases of essential goods, and group training to reduce expenses without compromising caregiver adequacy, nutrition, education quality, and child safety.