Response to Sinar Harian Article entitled "Cepat laksana gaji cukup hidup"Ref No : 06 Apr 2018 Embargo : For immediate release
We refer to the article entitled "Cepat laksana gaji cukup hidup" published in Sinar Harian on 4 April 2018.
It is incorrect to say that Bank Negara Malaysia’s analysis on the living wage suggests that Malaysians are poor. It is important to understand the concept fully so that any comments on the issue will not mislead and cause confusion.
Living wage is a benchmark on the income needed to attain a minimum acceptable living standard. It is not a benchmark to assess the extent of poverty. In addition to meeting basic needs, the living wage also provides for a meaningful participation in society, the opportunity for personal and family development, and freedom from severe financial stress.
The living wage mainly serves as a guide for employers to consider paying employees according to the needs of a minimum acceptable living standard. The living wage does not supersede the relevance of the current minimum wage of RM920 - RM1,000. The minimum wage is legally binding and aims to address the basic needs of households.
The ability to pay a living wage should be assessed with due consideration to employees’ productivity, so that it does not translate into unwarranted increase in cost that might lead to higher inflation.
Bank Negara Malaysia
06 Apr 2018
© Bank Negara Malaysia, 2018. All rights reserved.