PUTRAJAYA: The government has carefully calibrated its proposed wage increase to avoid fuelling inflation and placing excessive financial pressure on businesses, said Human Resources Minister Datuk Seri R. Ramanan.
He said the government had avoided a sharp increase to between RM3,000 and RM3,500, taking into account the potential impact on operating costs and consumer prices.
"We have calculated this very carefully. The increase is not drastic.
"We did not raise it to RM3,000 or RM3,500, as suggested by some experts, because the potential impact on prices and inflation must also be considered," he told reporters at a press conference here today.
Ramanan said the proposed wage structure was developed following extensive consultations and assessments by the National Wages Consultative Council (MPGN).
He said the council, led by Tan Sri Zainal Rahim Seman, had gathered data from various ministries and industry players before making its recommendations.
The proposals were also discussed with Prime Minister Datuk Seri Anwar Ibrahim and presented to the cabinet for consideration.
Ramanan said the government is confident that the proposed wage adjustments would be sustainable for the economy.
He also defended the decision to apply the proposed RM2,000 wage requirement to companies with an annual turnover of RM50 million, saying smaller businesses needed time to adjust.
"We cannot choke them. They must be given room to breathe.
"If we put too much pressure on every part of the industry, inflation will rise and prices will increase.
"That is why we must implement these measures gradually and systematically," he said.
Ramanan encouraged companies with an annual turnover below RM50 million to voluntarily adopt the RM2,000 wage level.
He said the government welcomed employers who were willing to pay their workers more, even if they were not covered by the proposed requirement.
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