A new minimum wage level soon

by | Mar 16, 2022 | Business, HUMAN RESOURCES | 0 comments

The Ministry of Human Resources said the timetable for the implementation of a new minimum wage level has been brought forward as the current economic situation is improving and most businesses are recovering.

The minimum wage level was initially supposed to be implemented at the end of this year but will be done soon as Malaysia’s GDP recorded an increase of 3.6 percent in the fourth quarter of 2021.

Based on the projections in Budget 2022, economic performance is expected to grow at a rate of 5.5 percent to 6.5 percent in 2022.

In relation to this, the government is proposing a new minimum wage rate soon and not at the end of 2022, given the current improving economic scenario.

Although some groups have called for the new minimum wage to be expedited due to the impact of the current economic situation and the rising cost of living, the ministry disclosed that the new rate will only be implemented after assessing people’s real needs and the ability of employers.

The ministry said any increase in wages must be done in stages to ensure continuity of business operations and retention of employees as excessive wages can affect the country’s competitive edge.