SST hike warrants rise in minimum wage, says MTUC
Published on: Wednesday, March 13, 2024
By: FMT
A Bank Negara Malaysia report in 2018 estimated a living wage of RM2,700 for single adults in the capital, RM4,500 for couples without children, and RM6,500 for couples with two children.
PETALING JAYA: The recent hike in the sales and service tax (SST) escalates the need to raise the minimum wage, the Malaysian Trades Union Congress (MTUC) said today.
MTUC secretary-general Kamarul Baharin Mansor also called for a review of the minimum wages order, saying it had been almost two years since the minimum wage was set at RM1,500 on May 1, 2022.
ADVERTISEMENT
In a statement, he said the review was urgently needed given the increase in SST, cost of essential goods, and other necessities like water and electricity.
He also noted that the National Wages Consultative Council Act mandates that the council restudy the minimum wages order every two years.
“The minimum wage rate must be studied and a new rate set, in keeping up with the latest increases in the cost of living,” Kamarul said.
He cited a Bank Negara Malaysia (BNM) report in 2018 that estimated a living wage of RM2,700 for single adults in the capital, RM4,500 for couples without children, and RM6,500 for couples with two children.
ADVERTISEMENT
“Static wage rates will cause workers to remain in poverty despite having jobs. Vocations such as cleaners, security guards, and jobs in the 3D (dirty, dangerous and difficult) sectors will be extremely affected if the minimum wage rate is not changed according to current conditions.
“MTUC urges the government to announce a new minimum wage rate after the two years have passed, and not give the excuse that it is still conducting studies,” he said.
ADVERTISEMENT
Last year, V Sivakumar, who was human resources minister at the time, said the government was studying BNM’s proposal for a living wage.
He said then that any implementation would need more detailed study, in line with current economic and labour conditions.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
