Government to review minimum wage in 2018

The government will review the minimum wage for peninsular and East Malaysia in 2018.

Deputy Human Resources Minister Datuk Seri Ismail Abdul Muttalib said the National Wages Consultative Council would conduct a study at least once every two years to evaluate and decide on the minimum limit for national wages.

This is in line with the National Wages Consultative Council Act 2011, he told the Dewan Rakyat.

"In making a review on the minimum wage, many factors are taken into consideration including socio-economic, productivity, cost of living and ability of employers.

"The next review on the minimum wage in the future is expected to be in 2018," he said in reply to a question from Su Keong Siong (DAP - Ipoh Barat).

Su had asked the ministry to state the status of the minimum wage implementation in Malaysia.

Ismail said during the tabling of Budget 2016, Prime Minister Datuk Ser Najib Abdul Razak had announced the new minimum wage of RM1,000 in peninsular and RM920 in East Malaysia.

The current minimum wage is RM900 and RM800 in peninsular and East Malaysia respectively, since it was enforced in 2014.

Ismail said the nation's productivity growth saw and increase to 3.5% from 1.8% since the minimum wage was implemented in 2014.

He said from 81,200 checks conducted by the ministry, a total of 1,172 employers had not complied with the minimum wage policy.