KUALA LUMPUR: The Human Resources Ministry is conducting a feasibility study on implementing a minimum wage for graduates, aimed at ensuring fair starting salaries that reflect their qualifications and skills.
Its minister, Steven Sim, said the study, carried out through the National Wages Consultative Council, is a comprehensive effort crucial to addressing salary expectations among younger workers, particularly those from Generation Z and Y (millennials), who now make up the majority of the country’s labour force.
“The study is important to ensure that graduates, the majority of whom are from the Generation Z and millennial cohorts, receive starting salaries that are commensurate with their qualifications.
“This includes ensuring their income is aligned with their academic qualifications and skills and is also relevant to the current challenge of rising living costs.
“The findings and related policy proposals will be submitted to the government once finalised,” he said in a written parliamentary reply published today.
He was responding to Young Syefura Othman (PH-Bentong), who enquired about the government’s intervention plan to improve the wage structure in employment sectors dominated by Generation Z and millennials, who are currently facing a high cost of living.
Citing the 2023 Salaries and Wages Survey Report by the Statistics Department, Sim said 76 per cent of the 10.1 million wage earners are aged between 15 and 44.
He said graduates aged 15 to 29, representing Generation Z, currently earn an estimated median monthly salary of between RM1,529 and RM2,076.
Meanwhile, those aged 30 to 44, representing millennials, earn between RM2,702 and RM3,381.
“The young workforce, which makes up the majority of the country’s labour market, holds significant potential to be empowered through government policy interventions that support the improvement of their well-being and competitiveness in the future economy.
“In this regard, the government has taken several strategic measures to address the issue of wage structure and ensure a fairer distribution of income, including the implementation of the Minimum Wage Order, the Productivity-Linked Wage System and the Progressive Wage Policy.”
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