Update salary structure based on qualifications, expert says
Failure to do so could lead to dissatisfaction among employees due to the insignificant salary gap between workers with different qualifications.
SHAH ALAM - Employers are encouraged to update their salary structures based on qualifications following the government's decision to raise the minimum wage from RM1,500 to RM1,700, effective Feb 1, 2025.
Universiti Sains Islam Malaysia (USIM) Human Resource Management lecturer Associate Professor Dr Abdul Rahim Zumrah said the decision signalled that companies could consider a new salary structure that accounts for qualifications.
“In this matter, the government is only addressing the 'base' by setting a new minimum wage from RM1,500 to RM1,700. This serves as a signal for employers to also raise employees' salaries according to their qualifications.
“The government cannot set the minimum wage based on qualifications because each employer's financial capacity differs.
“For example, it wouldn’t be fair for the government to set RM2,500 as the minimum wage for a bachelor's degree holder because some companies can afford to pay more than that amount, while others may not be able to due to financial constraints,” he said when contacted on Tuesday.
Previously, Human Resources Minister Steven Sim reminded employers not to set the increased minimum wage as the starting salary for workers across all job sectors, especially for university graduates.
He explained that the minimum wage was not meant to be the starting salary for all workers, particularly graduates, but rather the wage paid to entry-level workers with lower academic qualifications, including those in dirty, dangerous, and difficult (3D) jobs.
Rahim added that although the government did not directly address each level of educational qualifications, employers should take note of this issue.
He said that failure to do so could lead to dissatisfaction among employees due to the insignificant salary gap between workers with different qualifications.
“This matter should not be taken lightly. Employers need to consider a new salary structure across all qualification levels. No matter how small the increase, as long as there is a change (in salary) and a significant difference based on qualifications,” he said.
