PUTRAJAYA: Some companies have expressed dissatisfaction with the government's proposed minimum wage increase, citing concerns over higher operating costs, says Human Resources Minister Datuk Seri R. Ramanan.
However, he said the proposed increase had been carefully considered following extensive engagement with employers and industry representatives.
"Of course, there are some companies which were not so happy. They did share their views with us," he told reporters at a press conference.
Ramanan said the National Wages Consultative Council (MPGN), led by Tan Sri Zainal Rahim Seman had held numerous discussions with industry players to understand their concerns.
He said the council also analysed data gathered from various ministries and industries before finalising its recommendations.
"This was carefully thought through and planned to ensure that the economy can sustain the salary increase," he said.
Ramanan said determining an appropriate wage level required consideration of several factors, including employers' ability to pay, economic conditions and the potential impact on inflation.
Under the 2027 Budget, the government announced that the national minimum wage would increase from RM1,700 to RM2,000 a month beginning June next year, benefiting more than four million workers.
However, micro, small and medium enterprises with annual sales below RM50 million will be exempted from the new rate to give them time to adjust.
The government also announced a proposed RM2,500 minimum starting salary framework for graduates and semi-skilled workers.
© New Straits Times Press (M) Bhd