PUTRAJAYA: The proposed starting salary guidelines for graduates aim to reduce wage disparities between states and promote a more balanced labour market, National Wages Consultative Council chairman Tan Sri Zainal Rahim Seman said.
He said differences in starting salaries across the country could encourage graduates to seek employment in states offering higher pay, contributing to an uneven distribution of the workforce.
Without a more consistent salary framework, wage levels could vary significantly between states and local authority areas, he said.
"If we do not have guidelines, we will face distorted salaries between one state and another, and between different local authority areas.
"Workers will naturally move to states where salaries are higher," he told reporters after attending a press conference on the Minimum Wages Order 2027.
Zainal said the proposed guidelines would help establish a more balanced approach to graduate starting salaries nationwide, particularly in Sabah and Sarawak.
He said the private sector needed clearer guidance on appropriate starting salaries, especially as public-sector remuneration had undergone changes.
"The public sector has already moved to a different level, so the private sector also needs guidelines from the government on what salaries should be offered," he said.
Zainal said the council had undertaken a more comprehensive study of graduate starting salaries this year, building on earlier work that had not been completed in sufficient detail.
The latest study incorporated findings from consultants and researchers to develop a more systematic framework.
He said the objective was to ensure graduates entering private-sector employment received salaries that better reflected their qualifications.
"We hope graduates entering the private sector will also be treated fairly in terms of their starting salaries," he said.
The government announced a proposed RM2,500 minimum starting salary framework for graduates and semi-skilled workers under the 2027 Budget.
The Human Resources Ministry is preparing starting salary guidelines based on the Malaysia Standard Classification of Occupations (Masco) to provide employers with salary benchmarks according to occupations, qualifications and skills.
The guidelines are targeted for publication and implementation in June 2027. However, the graduate salary framework will initially be introduced through guidelines rather than as a mandatory wage requirement.
© New Straits Times Press (M) Bhd