Malaysia continues to deliberate on minimum wage

The National Wage Consultative Council (MPGN) is still discussing whether to maintain or increase the minimum wage rate.
By: | November 23, 2021
Topics: Compensation and Benefits | Health and Wellness | Malaysia | News

This was disclosed by human resource minister Datuk Seri M Saravanan, who said the National Wage Legislative Technical Committee (JTPGN) had presented the findings and recommendations of the Impact Study and Review of the Minimum Wage Order 2020 at the MPGN meeting held recently.

The Impact Study and Review of the Minimum Wage Order 2020 was done through public consultations and engagement sessions, involving representatives of employers and employees, employers’ organisations, trade unions and the public, to assess the impact of the implementation of the minimum wage on Malaysia’s socio-economy.

One of the main issues discussed at the recent MPGN meeting was whether the minimum wage should be maintained or raised, with employers advocating for the former and employees voting for the latter.

“However, MPGN has not made any decision at the meeting,” Saravanan said in a statement, adding that further discussions would be held at the next MPGN meeting on December 9.

READ: Malaysia’s minimum wage review slated for completion by year-end

According to the National Wages Consultative Council Act 2011 (Act 732), the Minimum Wage Order (PGM) must be reviewed at least once every two years. The Minimum Wage Order came into effect on February 1, 2020, according to The Edge Markets.