STUDY ON ‘REASONABLE’ STARTING SALARIES TO BE READY IN 6 MONTHS
Govt proposes minimum wage to be set at RM1,500 a month
IN a move that has been described as long overdue to help workers make ends meet, the government yesterday revealed that a comprehensive document on starting salaries for each employment sector, particularly those involving university graduates, is expected to be ready in six months.
This was being done to improve the salary schemes in the country to keep pace with the current economic situation.
The government was also hoping for employers to set a higher minimum wage than the RM1,000 set for Peninsular Malaysia and RM920 in Sabah, Sarawak and Labuan.
The proposal was for the minimum wage be set at RM1,500 a month.
Human Resources Minister Datuk Seri Richard Riot Jaem said a study on the matter was being conducted by the ministry.
“The study will delve into the starting salaries (suitable) for every employment sector and district. We hope to complete the study and document the findings in six months,” he said in reply to a supplementary question from Hee Loy Sian (PKR- Petaling Jaya Selatan) at the Dewan Rakyat yesterday.
Hee had cited that the starting salary of fresh graduates was about RM2,000 a month now, which was only slightly higher than RM1,800 about 20 years ago, and asked how the ministry planned to rectify the situation.
Deputy Human Resources Minister Datuk Seri Ismail Abdul Muttalib noted that the minimum wage for workers was up for a review next year as provided by the law.
He said the ministry wished for employers to set a higher minimum wage than the amount that had been set by the government.
“But, we are also concerned that the companies will be forced to wind down in the short term if their operations cannot be sustained by paying high salaries to workers," he said.
He was replying to Datuk Aaron Ago Dagang (Barisan Nasional-Kanowit), who had asked whether the ministry had reviewed the wage scheme for Malaysians in the private sector, considering the high cost of living, particularly in big cities.
The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) welcomed the move, noting that minimum salary of workers should be in line with today’s cost of living.
Its president, Datuk Azih Muda, said many, especially those earning low income, were finding it difficult to make ends meet.
“We are not only talking about buying a house, but we are talking about survival.
“Nowadays, if one is earning RM2,000 or below, there will be financial constraints as their salaries will be used on daily expenses, pay house rent and there will not be much left for savings.”
In a bid to attain a high-income nation status by the year 2020, he said it was necessary for the government to increase the minimum wage of workers.
However, Malaysian Employers Federa- tion executive direc- tor Datuk Shamsuddin Bardan said it was best for the authorities to leave issues concerning salaries of workers to market forces to decide.
He said if the starting salary for workers was set by the government, it is going to make employment very difficult and it would not be good for the market.
“Currently, there is no legislation to fix starting salaries other than minimum wages.
“If the government interferes in this matter, employers will have to decide whether to open up new job offerings,” he said, pointing out that starting salaries for fresh graduates depended on the type of degree one had.
Undergraduates interviewed said the government’s move was timely.
International Islamic University Bachelor of Communication student Ahmad Syakir Ahmad Nizam, 21, said doing so would enable fresh graduates to start off on a better footing.
Another undergraduate, Nur Sabrina Rauzan, said the current economic situation may not be that positive for companies and factories to agree to any move to increase wages.
Meanwhile, JobStreet.com Regional Communications head Simon Si said in a market situation of escalating costs and increased inflation, the purchasing power of wage earners would inevitably become smaller.
“This is especially so for city dwellers.
“This makes it very hard for fresh graduates who have invested time and money in getting the qualifications to justify working at salaries that make it difficult to make ends meet.
“Therefore any initiative by the government to improve the wage situation is welcomed.” Additional reporting by Nor Ain Mohamed Radhi