PUTRAJAYA: The proposed RM2,000 minimum wage was determined through economic research and extensive consultations with employers, workers and academics, rather than an arbitrary decision, National Wages Consultative Council chairman Tan Sri Zainal Rahim Seman said.
He said the council had conducted 21 engagement sessions nationwide and commissioned a comprehensive study to ensure the proposed rate was fair to workers without placing undue pressure on employers.
The study, supported by a government allocation of between RM1 million and RM1.5 million, examined several economic indicators to determine an appropriate minimum wage.
These included the poverty line income, median wages, price indices, labour growth and gross domestic product (GDP).
"We do not use figures arbitrarily. The rate is based on studies conducted by academics and consultants, and we believe it is appropriate and reasonable.
"It should not impose an undue burden on any party," he told reporters here.
Zainal said the council had also compared Malaysia's wage levels with those of other countries before arriving at its recommendations.
Based on median wages and other economic indicators, the study produced a projected wage range of about RM1,970 to more than RM2,100.
However, he said the council had to consider the interests of both workers and employers before recommending a rate.
"We held consultations with employers, workers and trade unions. We also have five academics, including university lecturers specialising in economics, who help us with the analysis," he said.
Zainal said the wage-setting process followed a tripartite approach involving the government, employers and workers.
The objective was to strike a balance between improving employees' purchasing power and ensuring businesses could manage their operating costs.
He acknowledged that implementing a new minimum wage could present challenges, recalling similar difficulties when Malaysia introduced its first minimum wage of RM900.
"There were problems when we first introduced the minimum wage. Implementation challenges will always exist, but our responsibility is to enforce it," he said.
Under the 2027 Budget, the government announced that the national minimum wage would increase from RM1,700 to RM2,000 a month from June next year.
Micro, small and medium enterprises with annual sales below RM50 million will be exempted from the increase to allow them time to adjust.
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