PUTRAJAYA, April 30 (Bernama) -- Two important aspects that were taken into
account by the Human Resources Ministry Technical Committee in its study
pertaining to minimum wage are in terms of poverty line index and medium wage.
Its minister, Datuk Seri Dr S.Subramaniam said the study on the poverty line
index, which refers to the level of income needed by workers, and medium wage,
which refers to the salary the employer is willing to pay, was made to determine
the base line criteria in setting the minimum wage.
He said the study was then made based on three other factors, namely the
Consumer Price Index, worker''s productivity and the impact to the unemployment
"The ministry''s technical committee, as well as the World Bank, have been
searching for a suitable formula to set the minimum wage.
"What was proposed by the committee was not the result of emotional
perception or political agenda. It was based on strong financial indicators," he
said this during a meeting with members of the media here today.
SUBRAMANIAM-WAGE 2 PUTRAJAYA
Subramaniam said the World Bank had also studied the possible
implications of the setting of the minimum wage in two main aspects, namely the
power to attract investment, and its impact on unemployment rate.
He said both aspects had been taken into account by the committee and their
study found that minimum wage would not cause significant impact to the country.
The minister said the government would support all employers in this matter
by giving sufficient time for them to make ''adjustments'' to their operations, in
line with the setting of the minimum wage.
"We''ll try to take into account the needs of employers and employees. The
decision was made by the technical committee and the National Wage Consultation
Council. This is not a unilateral decision. In principle, it is agreed by all
quarters," he said.
Subramaniam said different rates set between the peninsula and Sabah and
Sarawak were due to various factors, including the salary rate in certain
He said the minimum wage would also apply for foreign workers in the
SUBRAMANIAM-WAGE 2 (LAST) PUTRAJAYA
The minister said a minimum wage unit would also be set up by the ministry
to receive all reports raised by the industry players and bring them to the
attention of the technical committee.
Subramaniam said the minimum wage did not mean that it was an effort to
giver higher salary when productivity remained at the same level.
Instead, he said in setting the minimum wage, the worker''s productivity will
be increased in line with their salary increase.
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