Private sector expected to 'follow' wage gain for civil servants to reduce ‘burden’ on workforce
Malaysian Prime Minister Datuk Seri Anwar Ibrahim is calling on the country's private sector to hike wages following the salary adjustment to civil servants.
"I hope the private sector will review their (salary) schemes so that the (financial) burden of the workforce can be reduced with a more reasonable remuneration and salary increment scheme, especially companies that record large profits," Anward said as quoted by Bernama.
"There is no reason for a monthly salary to be less than RM2,000."
Anwar made the remarks after addressing civil servants at the 19th edition of Majlis Amanat Perdana Perkhidmata Awam (MAPPA) themed "MADANI Public Service" last week.
During the event, Anwar announced a salary adjustment for civil servants that will take effect starting December, Bernama reported. Civil servants in the Implementing, Management, and Professional groups will receive a 15% salary adjustment, while those in the Top Management group will receive seven per cent.
"The salary adjustment will be implemented in phases, starting from December 1, 2024, for Phase 1, and from January 1, 2025, for Phase 2," Anwar said.
"Pension adjustments will also be implemented based on the final salary adjustment of retirees in December 2024."
Malaysia's Ministry of Human Resources (Kesuma) said the salary adjustment for civil servants complements the National Progressive Wage Policy, alongside the Minimum Wage Policy, and the Productivity Linked-Wage System, Bernama reported.
According to Deputy Minister Datuk Seri Abdul Rahman Mohamad, the increase is expected to help achieve a "more balanced income distribution."
"The private sector is expected to follow suit, as over 1,000 employers have responded positively to similar initiatives," the deputy minister added.
Kesuma is "likely" to propose a new minimum wage proposal to Cabinet in September, according to Human Resource Minister Steven Sim.
