Human Resource Ministry studying 'Living Wage' model: Sivakumar

KUALA LUMPUR - The government, through the Human Resource Ministry (KSM) is currently studying Bank Negara Malaysia's (BNM) proposal on the implementation of the 'Fair Living Wage' model in Malaysia.

Human Resource Minister V Sivakumar said the progressive wage model needs to be studied deeper in accordance with the current economic and labour situation in Malaysia.

He said the implementation of progressive and minimum wages have the same objective, which is to protect workers receiving low salaries.

The BNM 2017 Annual Report, he said, had proposed a living wage rate of RM2,700 for an unmarried adult in urban areas, RM4,500 for a couple without children, and RM6,500 for a couple with two children.

"Following this, the government needs to carefully study this and identify the most suitable model for our country," he said in response to a supplementary question from Datuk Awang Hashim (PN-Pendang) who asked whether the government would consider implementing proposals on a progressive wage model.

Meanwhile, responding to Awang's original question on the government's rationale for delaying the implementation of Minimum Wage Order 2022 (PFM2022) against employers with less than five employees even when the order applies to other categories of employers, Sivakumar said the decision was made after considering various aspects.

"The postponement was made after taking into account memoranda from various parties involved stating that they had to bear additional costs due to PGM2022 implementation, which would ultimately increase the production cost of the company's operations and services.

"These additional six-month delays are for microbusinesses with fewer than five employees, where it is expected to give them the opportunity to coordinate and balance their financial needs and also help restore the company's economic positions," he said.