Expand Minimum Wage Structure to Middle-Income Workers, Says MTUC

KUALA LUMPUR, Aug 23 — The Malaysian Trades Union Congress (MTUC) has urged the government to expand the national minimum wage structure to cover middle-income workers, ensuring salary progression aligns with qualifications, skill levels, and work experience.

MTUC Secretary-General Kamarul Baharin Mansor stated that broadening the framework beyond baseline earners would help address skills mismatches, enable companies to attract and retain quality talent, and support productivity alongside wage growth.

Welcoming Human Resources Minister Datuk R. Ramanan’s statement that the government is reviewing the minimum wage rate, Kamarul Baharin described the ongoing assessment as a positive step for the workforce.

He noted that under the National Wages Consultative Council Act, the minimum wage rate must be reviewed once every two years. With five months remaining before the deadline, he urged the government to announce the updated rates without delay, noting that following the increase implemented in February 2025, the new rate should take effect in February 2027.

“Any delay could place greater pressure on workers amid rising costs of goods,” Kamarul Baharin warned.

He suggested that a decent living wage benchmark of RM3,100 per month could serve as a reasonable reference point for the new minimum wage, factoring in macroeconomic pressures such as inflation, food prices, housing, transportation, and basic necessities.

Kamarul Baharin pointed out that the absence of a comprehensive wage structure has left some long-serving employees earning baseline salaries, with individuals still receiving RM1,700 despite having 10 years of service.

He added that MTUC is prepared to collaborate with the government through the National Wages Consultative Council (MPGN) by submitting feedback and proposals on the revised wage structure.

Human Resources Minister Datuk R. Ramanan previously stated last Tuesday that the government is reviewing the minimum wage rate to determine whether the current RM1,700 monthly rate should be maintained or increased.

–NMT