KUALA LUMPUR: Employers will not be allowed to circumvent the proposed RM2,500 minimum starting salary for graduates by lowering job qualification requirements under planned amendments to the National Wages Consultative Council Act 2011.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said the proposed amendments would close a potential loophole by making educational qualifications a factor in determining mandatory starting salaries, preventing employers from arbitrarily reclassifying jobs to justify lower pay.
“Once this element is incorporated, employers cannot simply or arbitrarily disregard employees’ qualifications when determining their positions,” he told the Dewan Rakyat today.
He was responding to Kuantan MP Wan Razali Wan Nor, who asked whether employers could circumvent the proposed wage requirements by downgrading positions traditionally requiring degrees to diploma or Sijil Pelajaran Malaysia (SPM) level.
Khairul Firdaus said the National Wages Consultative Council was reviewing its starting salary guidelines based on the Malaysia Standard Classification of Occupations to establish a clearer wage structure that reflects workers’ qualifications and skills.
The revised guidelines are expected to be introduced alongside a new minimum wage order in June 2027, which will include a monthly starting salary of RM2,500 for graduates and semi-skilled workers, as announced under Budget 2027.
Earlier, in response to Bukit Bendera MP Syerleena Abdul Rashid, he said the proposed amendments were necessary because the existing legislation did not specifically provide for mandatory minimum starting salaries based on educational attainment.
He said the government was also working to reduce skills-related underemployment, which stood at 32.2% in 2024, to 30% by 2030 under the 13th Malaysia Plan.
The rate had declined marginally from 32.4% in 2023, highlighting the continued mismatch between graduates’ qualifications and the jobs available to them.
Khairul Firdaus said the government was targeting higher wages of RM3,500 and an increase in employees’ compensation to 40% of gross domestic product by 2030.
On efforts to align training with industry needs, he said the Department of Skills Development had established 2,028 active National Occupational Skills Standards to guide training programmes in line with technological developments and labour market demands.
The department also conducts industry-based training through 1,391 centres under the Akademi Dalam Industri programme.
