THE government should increase the minimum wage amount from the announced RM1,500 to make it relevant to the current situation, Nurul Izzah Anwar (Permatang Pauh-PH) told Parliament today. 

During a debate on the second reading of the Employment (Amendment) Bill, Nurul Izzah said the new minimum wage amount of RM1,500 was proposed before the Covid-19 epidemic and was now not contextually relevant.

The 41-year-old also criticised Prime Minister Ismail Sabri Yaakob for announcing the new minimum wage, which will be effective May, at his party’s general assembly last weekend. 

“This is unprecedented. You’re the prime minister… not just of your party but the whole of Malaysia,” she said. 

Ismail announced that Malaysia will implement the RM1,500 minimum wage starting May 1 during his winding-up speech at the Umno general assembly on Saturday.

“Although we welcome it, the RM1,500 minimum wage was announced before the pandemic hit and the average monthly wage received by Malaysian workers decreased by 9% from 2020 to 2021,” she said.

Malaysia last raised the minimum wage in February 2020, from RM1,100 to RM 1,200 per month. The hourly rate also increased from RM5.29 to RM5.77. 

She said while it is good that the National Wages Consultative Act 2011 (Act 732) provides a review of the minimum wage every two years, the current minimum wage was only relevant four years ago. 

“I’m not saying we don’t take into account the needs of employers, only contextually you have to be fair. We must follow the needs now, hence why the wage should be higher,” she said. 

Meanwhile, Nurul Izzah also recommended that the government implement a law that seeks to protect gig workers.

“This is to ensure that the Social Security Organisation (Socso) contribution policy that protects the safety and welfare of workers in the gig economy  is under the responsibility of employers and companies and not just employees alone,” she said. 

“There has already been a high degree of burden under Socso to cover informal workers, which comprise 33% of Malaysia’s workforce,” she said. – March 21, 2022.