KUALA LUMPUR: Trade unions are calling on the government to revise the Employment Act 1955 to include specific provisions that would mandate private employers to implement wage restructuring, including annual salary increases.
The call was made by the Malaysian Trades Union Congress (MTUC), while the Union Network International-Malaysia Labour Centre (UNI-MLC) proposed raising the minimum wage rate to RM2,200 from the existing RM1,500.
MTUC deputy president Maktar Siwang said the proposed revision to Employment Act ensures the annual movement of wages for private employees, citing the example of many workers in the sector who have not received a salary increase for more than 10 years.
This is because, he said, there is no legal provision obliging private employers to make salary structuring, including annual wage increases that result in many private sector workers receiving static wage rates, some even lasting for a long time
"There are private sector employees who have been with their company for over 10 years yet still earn only RM1,700 per month, which does not reflect their years of service.
"Moreover, some companies, despite making substantial profits, only raise salaries for top management while the pay for lower-level employees remains significantly lower, with wage disparities exceeding 100 times.
"Therefore, to effectively encourage private companies to increase wages, it is essential to provide clear and decisive directives," he told BH yesterday.
On Friday, Prime Minister Datuk Seri Anwar Ibrahim announced that civil servants in the implementing and professional group will receive a 15 per cent salary increment effective Dec 1.
This follows a salary review of civil servants under the new Public Service Remuneration System (SSPA).
Anwar, who is also the Finance Minister, added that civil servants in top management and professional roles will see an increase of seven per cent.
The increment, he said, will be implemented in two phases: the first phase in December this year and the second phase in January 2026.
He also called on the private sector employers to adopt similar measures to those taken by the government to ensure a fairer distribution of income among their staff,if the company reports high profits.
He also noted receiving numerous complaints from private sector employees who, despite their companies making substantial profits annually, receive only modest salaries and bonuses.
Commenting on Anwar's call for an increase in private sector wages, Maktar said the suggestion demonstrates the prime minister's concern for all workers in the country.
"MTUC is confident that Anwar's proposal for wage increases comes from the heart of a leader who wishes to ensure that the workforce benefits from the country's prosperity.
"The announcement of public sector wage increases has led to disappointment among private sector workers struggling with very low salaries.
"For example, a net monthly income of RM1,330 is unreasonable for coping with current living conditions," he said.
Meanwhile, UNI-MLC president Datuk Mohamed Shafie BP Mammal, when proposing the minimum wage to be increased to RM2,200, said the recommendation was a follow-up to a study carried out last year.
"We didn't put that number (the new minimum wage) on a whim. We did a study, for example of a household with a husband, wife, and two children.
"That number is according to a study done according to those living in Kuala Lumpur or big cities," he said.