KUALA LUMPUR: The government has proposed that the minimum wage be raised to RM1,100 nationwide from Jan 1, 2019.
Finance Minister Lim Guan Eng said this was among the measures being adopted by the government to help the people cope with the rising cost of living.
“We understand the need and importance of ensuring that salaries can cope with the rising cost of living, hence the government has proposed that the minimum wage be raised to RM1,100 nationwide from Jan 1, 2019,” he said while tabling the 2019 Budget in the Dewan Rakyat.
Lim said, as a measure to reduce the income gap, public-listed companies will be required to display, in their annual reports, information on the highest wage and median wage ratios, as well as the highest and lowest wages ratios.
“The companies will also be required to state their plans on how they plan to improve their workers’ average salaries,” he said.
Lim said the government will also be reviewing labour laws to empower the labour market, employee welfare as well as prohibit any form of discrimination on the part of employers.
“The government will also speed up resolutions over disputes between employers and employees by setting up an Industrial Appeals Court.
Earlier, Lim stated that Malaysia’s unemployment rate stood at 3.4 per cent and that structural issues have led to long-term unemployment, especially among the youths.
He said in order to boost skills training among school-leavers and increase the marketability of graduates, the government will carry out two programmes funded by the Human Resources Development Fund (HRDF).
These, he said, are the Apprenticeship and Graduate Enhancement Programme For Employability (GENERATE). The programmes, he said, can open up emplyment opportunities for 4,000 school-leavers and graduates, with an allocation of RM20 million.
The finance minister also touched on Malaysia’s ageing population. He said by the year 2020, there will be one million Malaysians aged between 61 and 65 who would still be productive and active.
“To generate job opportunities for this group, the government proposes that the mandatory Employees Provident Fund (EPF) contribution by employers be reduced from 6 per cent to 4 per cent from January 1, 2019.
“This group will not be required to contribute to the EPF and thus, be able to boost their monthly income,” he said.
He said the government is also proposing that additional tax rebates are given to employers who employ this group, with a maximum rate of RM4,000 a month.
“This is meant to encourage employers to hire those from this category, especially the B40 (lower-income earners) to work.”
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