MINIMUM WAGE
By Tania Lam & Mohammad Fikri Jamal
KUCHING: The government’s decision to raise the minimum monthly wage is appropriate considering the rising cost of living.
Effective January 1, 2020, the minimum monthly wage will be raised to RM1,200 in major towns under 57 city and municipality councils, while the minimum wage will remain at RM1,100 per month for the rest of the nation.
Training consultant Nurul Hayyu Mohidin, 28, said that it was unfair not to increase the minimum monthly salary when the cost of living was rising.
“The pay should be increased to balance it accordingly,” she said.
She said that in light of this decision, employers would have to manage their finances as soon as possible as the effective date approaches.
“We’re on the verge of closing accounts for the end of the year as well.”
However, Nurul pointed out that a minor increase did not cover much of the current cost of living.
“The gap is huge and the current increment is clearly not sufficient still,” she said.
Financial consultant Cinthy Yii, 46, also supported the increase in minimum monthly salary, giving an example that when she started working in 1996 with an advanced diploma, her salary had already been around RM1,000.
“It has been 23 years and the wage scale is still so low,” she noted.
She expressed concern that even with the increase, many may still not know how to save. She urged for education on financial savings.
“I think the government should increase Employees Provident Fund (EPF) contribution, or perhaps companies can consider private retirement benefits for their employees as a form of savings when they retire,” Yii suggested.
Construction worker Mohd Ismail Kalom, 40, said that the RM100 increment from the previous minimum wage may seem insignificant to some, but it would have a huge impact on the low-income (B40) group.
“The additional amount would allow us to buy various necessities such as petrol and daily essentials,” he said, adding that strict action should be taken against employers who did not comply with the new minimum wage.
Restaurant worker Nur Fazilah Syazawani Suhaili, 22, said that the rising cost of goods was incredibly burdensome to the point that many were living paycheck to paycheck.
Meanwhile, shopping centre employee Bunga Ayana, 36, hoped that irresponsible parties would not take advantage of the minimum wage increment by increasing the cost of goods.
“The prices of goods are increasing from day to day, especially in the urban areas.
“If one’s salary was below the set minimum, I can guarantee it will be inadequate to live with,” she said.
Workshop employee Mohd Assriel Sarjamia, 21, said the government must monitor the prices of commodities to ensure that certain parties would not take the opportunity to increase the cost of goods.
“The cost of living in the urban areas now is very challenging, causing the urban poor rate to increase,” he added.
