Accra:The setting of the RM2,000 minimum wage rate is based on a comprehensive study of Malaysia's economic conditions, considering the interests of both workers and employers, according to National Wages Consultative Council (NWCC) chairman Tan Sri Zainal Rahim Seman.

According to BERNAMA News Agency, studies and engagement sessions with stakeholders, including academics, were conducted to ensure the appropriateness of the minimum wage rate. The study commenced earlier this year to gather recent data for analysis and projections for the government's consideration.

Zainal Rahim emphasized that the government provided guidance, while workers and employers shared their perspectives. The recommendations aimed to find a middle ground benefiting both parties, focusing on balancing the impact on workers and employers.

He highlighted the importance of ensuring that the minimum wage allows workers to earn a sufficient income to cover living expenses and enhance purchasing power, while also considering the capacity of micro, small, and medium enterprises (MSMEs). Employers are encouraged to collaborate with the Human Resources Ministry to implement the new wage rate.

Acknowledging the challenges of implementing the new minimum wage, he stressed the need for collective effort to ensure workers receive fair wages aligned with living costs and economic development. He underscored the importance of a shared responsibility in advancing the nation towards becoming a developed, high-income country.

Prime Minister Datuk Seri Anwar Ibrahim previously announced the government's agreement to raise the minimum wage from RM1,700 to RM2,000, effective June 2027, benefiting over four million workers. Anwar stated that MSMEs with annual sales below RM50 million would be exempted from the new rate to adjust their business models. He also mentioned reforms to the workers' income framework, including a proposed initial minimum monthly wage of RM2,500 for semi-skilled jobs and graduate-level positions.