PUTRAJAYA – The federal government doesn’t rule out the chance that the enforcement of the RM1,500 minimal wage for employers with fewer than 5 employees, which started on July 1, will have an effect on the nation’s inflation charge, stated Minister of Economic system Rafizi Ramli (image).
Talking to reporters on the ministry in the present day, Rafizi stated the federal government had carried out the mandatory evaluation on the matter earlier than deciding to implement it.
“The enforcement of minimal wage order comes with a danger (of inflation) however we (the federal government) at all times ensure that the rise within the wage charge may help stability the wage and the price of residing of the employees. That’s our focus.
“The character of the financial system is such that there’s at all times inflation. In truth, we hope to maintain inflation at a wholesome degree of round two per cent,” he stated.
The minimal wage order for the complete nation was gazetted on April 27, 2022, for implementation from Could 1, 2022, whereas the enforcement of the RM1,500 minimal wage for employers with fewer than 5 employees, took impact on July 1 this yr.
Rafizi stated the nation’s inflation charge in Could 2023 continued to say no to 2.8 per cent in comparison with 3.3 per cent in April 2023, marking a nine-month consecutive lower.
“What’s essential is that inflation might be absorbed by a wage improve that’s commensurate with the worth of labor and the rise within the costs of products,” he stated.
Rafizi stated the enforcement of the minimal wage order might additionally make sure that folks’s revenue elevated periodically according to the rising price of residing. – Bernama / pic Hussein Shaharuddin