National Wage Index introduced in Malaysia

21 Feb 2019

moneyMalaysia has launched a National Wage Index aimed at measuring changes in the salaries of Malaysian workers, according to Human Resources Minister M. Kulasegaran.

As Bernama reports, the index was the first introduced in Malaysia and formed part of the 11 labour market consolidation initiatives under the 11th Malaysia Plan.

Kulasegaran said it is included in the priority areas of enhancing productivity, increasing job creation and raising the salary structure.

The index will aid employers to adjust salaries and acquire input for their human resources policies.

Speaking after the launch, Kulasegaran said, “Employees and job seekers can benchmark changes in their wages to broader labour market trends and assess their wage increase or changes over their career paths.”

He added that the government could benefit from the index, using it to keep an eye on and make salary adjustments – particularly to amend the minimum wage.

The Institute of Labour Market Information and Analysis created the index based on quarterly surveys that reveal payroll information and adjustments between September 2016 until June 2018.

According to the minister, the survey revealed that the basic wage increased by 8.2% over the eight quarters in the given timeframe.

The index will be published on a quarterly basis, with the second one set for the second quarter this year.

Kulasegaran added that the government would also work to increase the participation of women, retirees over the age of sixty and disabled persons in the work force.

He said: “We should not allow the experience of older workers to go to waste as they still have much to contribute to economic growth.”