KUALA LUMPUR: Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin has cautioned employers not to misuse the new Basic Expenditure of Decent Living (PAKW) data to avoid increasing wages for employees.
He said the economic data is not intended to be used negatively to suppress wages.
"The (PAKW) data is not intended to be used in a negative way," he said when met after the town hall on PAKW and gross domestic product (GDP) by district, held today.
Uzir was responding to a question about whether the PAKW data could be used by some employers to underpay their employees, given that the rates vary by district.
He said employers can also use the PAKW data when relocating employees from one district to another.
"For example, this applies when transferring a staff member from a district with a PAKW of RM5,000 to one with a PAKW of RM7,000.
"The PAKW data provides a basis for negotiations between employer and employee, as there was previously no reference point for the basic expenditure of decent living," he said, adding that wages are often set according to the job's specific needs, not the average cost of living in an area.
In a similar development, Uzir said the PAKW data has the potential to be used for targeted RON95 subsidies.
"Figures based on districts could potentially be used not only for subsidy targeting but for many other purposes," he said when asked about the possibility of varying subsidy amounts by districts in the implementation of the RON95 subsidy targeting.
During the tabling of the 2025 Budget on Oct 18, Prime Minister Datuk Seri Anwar Ibrahim said the targeted subsidy for RON 95 petrol will be implemented in the middle of next year.