SPM and technical workers deserve higher pay - MTUC

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Mohd Effendy Mohd Effendy
Mohd Effendy

RM1,700 minimum wage set for 2025, but MTUC calls for more reforms

SHAH ALAM – Workers with at least a Sijil Pelajaran Malaysia (SPM) qualification and technical skills should not be placed under the minimum wage category but instead receive salaries that reflect their qualifications and expertise.

Malaysian Trade Union Congress (MTUC) President, Mohd Effendy Abdul Ghani said that classifying skilled and educated workers under the minimum wage category diminishes the value of education and discourages young people from upskilling.

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"Workers with academic qualifications and professional skills should not be classified under the minimum wage category, as doing so devalues education and discourages young workers from upskilling.

"MTUC urges the government to introduce a dignified wage policy that acknowledges educational and skill levels in wage structures,” he said in a statement on Friday.

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Effendy added that the minimum wage should serve as a safety net for workers without formal education or specialised skills, rather than a one-size-fits-all benchmark.

MTUC also welcomed the announcement by the Human Resource Ministry (Kesuma) on the implementation of the Minimum Wage Order 2024.

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The new policy, which takes effect on Feb 1, sets the minimum wage at RM1,700 per month for businesses employing five or more workers.

Describing the move as a step in the right direction, MTUC said it would help workers cope with the rising cost of living.

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"The increase in the minimum wage aligns with the government’s efforts to enhance workers’ purchasing power and promote sustainable and inclusive economic growth,” Effendy said.

However, the union stressed that setting a new minimum wage alone is not enough.

Strict enforcement is crucial to ensuring employers comply with the law.

MTUC urged the Manpower Department (JTK) to intensify monitoring efforts, warning that failure to enforce the wage order would leave many workers vulnerable to exploitation.

Without firm action, some employers may continue paying below the minimum rate, undermining the policy’s effectiveness.

Beyond enforcing the minimum wage, MTUC stressed the importance of recognising workers' educational and skill levels in wage structures.

Salaries should reflect academic achievements and professional expertise.

Workers with SPM qualifications should receive wages above the minimum rate to acknowledge their educational attainment.

Meanwhile, those with technical skills or diplomas should be compensated fairly in line with their expertise, ensuring that their training and specialised knowledge are valued appropriately.

For degree holders and engineering graduates, salaries should be significantly higher, given their contributions to industry growth and innovation, he added.

Effendy stated that when wages fail to reflect educational achievements, it leads to frustration among workers and weakens their motivation to further develop their skills.

"If diploma holders or engineering graduates receive the same wages as unskilled workers, it creates a sense of unfairness and discourages young professionals from entering or remaining in key industries, ultimately affecting workforce quality and economic progress,” he said.

MTUC reminded employers of their role in creating a fair and competitive salary structure.

Effendy stated that businesses should not rely solely on the government to dictate wage policies but should take the initiative to reward workers appropriately based on their qualifications and contributions.