PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has stated the need to raise the minimum wage due to the recent hike in service tax.
The minimum wage order should be reviewed, according to MTUC secretary-general Kamarul Baharin Mansor, who noted that it has been over two years since the RM1,500 minimum pay was established on May 1, 2022.
As reported by FMT, he stated in a statement that the assessment was critically needed in light of the rising service tax, the price of basic items, and the rising costs of other needs like energy and water.
He added that every two years, the National Wages Consultative Council Act requires the council to reevaluate the minimum wage regulation.
According to Kamarul, “the minimum wage rate needs to be reviewed and a new rate set, in keeping with the latest increases in the cost of living.”
He additionally referenced a 2018 Bank Negara Malaysia (BNM) research that projected the living wage in the capital to be RM2,700 for single persons, RM4,500 for childless couples, and RM6,500 for couples with two children.
“Workers with employment will continue to live in poverty due to stagnant wage rates. If the minimum wage rate is left as it is, occupations like cleaning, security guarding, and work in the 3D (dirty, hazardous, and demanding) sectors would be severely impacted.”
After the two years have elapsed, “MTUC urges the government to announce a new minimum wage rate, and not give the excuse that it is still conducting studies,“ he continued.
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