Huge portion of people being paid low wages - Rafizi

PUTRAJAYA - Economy Minister Rafizi Ramli shares his worries when the Employee Wages Statistics (Formal Sector) Report for the first quarter of 2023 shows that a large portion of the public are paid low wages.

He said 82 per cent of 6.46 million formal workers had wages of less than RM5,000 monthly while 35 per cent were paid RM2,000 and below.

“Without an intervention policy in wage determinations, we fear the tendency of starting wage will not be different from the current minimum wage of RM1,500,” he said at a press conference after the launch of the report here on Friday.

He said the starting wages for post-graduate workers should be much higher from the minimum wage.

Rafizi explained that the minimum wage of RM1,500 was for workers without qualifications.

“Based on preliminary findings, statistics show it (salary of skilled workers) is dragged down close to the minimum wage.

“The minimum wage level was used as a reference for pay especially for post-graduates and skilled youth workers,” he said.

He said the phenomenon needed an immediate policy to be corrected.

“We are confident that there’s indeed a wage issue. It’s not only spoken, now it could be confirmed by data of over six million workers.

“I’m sure the matter would be discussed thoroughly and at the ministry level,” he said.

Rafizi said the progressive wages policy meeting on Monday would table the middle ground that would be implemented practically in the nation as well as receive support from employers.

“There are many different models following certain nations and employers have given their feedback through previous debate sessions,” he said.

He added that the government must allocate funds annually for raising wages primarily for the private sector.

“Previously the government would only raise public sector wages and the private sector would not gain anything.

“It needed an agreement with the government to make an annual allocation and this would be discussed,” he said.