The government may raise the minimum salary system by the end of this year, that is, it will be raised to about RM1,500.
According to a message from Human Resources Minister Datuk Seri Saravanan, the minimum salary is expected to be raised at the end of this year and is currently awaiting the approval and passage of the Cabinet.
Saravanan pointed out that the government has not yet decided the amount of the real minimum salary, but the study report on the increase of the minimum salary study completed. The Ministry of Human Resources will recommend the new minimum salary amount to the Cabinet, and will only be announced after the Cabinet’s approval and adoption.
The current minimum salary is RM1,200 and this measure is effective from 2020 when the minimum salary is increased from RM1,100 to RM1,200 in 57 major cities. For other areas that are not on the list of 57 cities, the minimum salary will remain at RM1,100 per month. The Ministry of Human Resources explored raising the minimum salary to RM1,500 nationwide.
According to a survey conducted by the National Bank in 2016, a single person living in the city would need a minimum of RM2,700 per month, while a couple family would need RM4,500 and a family with 2 children would need RM6,500.
This means that the current minimum salary system of RM1,200 implemented in the country is simply not up to the standards set by Bank Negara. Malaysia’s progress in adjusting the minimum salary has been slow, and the Ministry of Human Resources hopes to raise the minimum salary amount to about RM1,500 by the end of this year.
