KUALA LUMPUR: Employers must fully adhere to the new minimum wage without attempting to exploit their workers, said the Malaysian Trades Union Congress (MTUC).
MTUC president Mohd Effendy Abdul Ghani said there needs to be stronger enforcement of relevant laws to ensure the protection of workers' rights.
"The increase in minimum wage demonstrates the government's commitment to the welfare of workers across the nation, particularly those in the low-income bracket.
"The rise in the minimum wage is a crucial step that can alleviate the burden of the rising cost of living, which has been escalating due to inflation and global economic pressures.
"It aligns with the nation's goal to promote a fairer economy and ensure that no group of workers is left behind in the country's development," he said in a statement today.
However, Effendy said the government should provide support to the small and medium enterprises sector to help them adapt to the increased operational costs arising from this wage rise.
He suggested that assistance should include incentives, training and financing to ensure that the minimum wage increase does not lead to workforce reductions or business closures.
"MTUC would like to encourage larger employers with the financial capability to offer wages that exceed the set minimum wage.
"We sincerely hope and welcome actions from employers who are willing to provide higher wages as a proactive measure to appreciate their workers' contributions and help them cope with the rising cost of living.
"This step not only demonstrates the social responsibility of employers but can also enhance worker productivity and motivation," he said.
He said MTUC believes the increase in the minimum wage would not only improve workers' living standards but also drive economic growth through increased purchasing power.
Effendy said this would benefit the national economy as a whole, given that higher domestic spending will stimulate local businesses and contribute to more inclusive economic growth.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim said the minimum wage will be raised from RM1,500 to RM1,700 a month, effective Feb 1, 2025.
Anwar said for employers with less than five workers, the new minimum wage would come into force on Aug 1, 2025.