Speaking to reporters on Friday (July 4) at the launch of the
Statistics on Wages for the First Quarter of 2023, Economy Minister Rafizi Ramli said the minimum wage of RM1,500 should not be set as a reference by employers to pay the salary of fresh graduates and the government has to intervene to correct the situation by introducing the progressive wage model or policy that should be received and implemented by the employers.
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Statistics on Wages for the First Quarter of 2023, Economy Minister Rafizi Ramli said the minimum wage of RM1,500 should not be set as a reference by employers to pay the salary of fresh graduates and the government has to intervene to correct the situation by introducing the progressive wage model or policy that should be received and implemented by the employers.
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NewsTranscript
00:00 In the count of three, two, one.
00:03 The graph also shows that...
00:13 ...from one year to the next...
00:15 ...our salary graph is being shifted to the lower side.
00:22 It should be going there.
00:24 We are concerned that if there is no basis...
00:32 ...that is consistent with the salary definition...
00:35 ...we are concerned that the tendency...
00:39 ...of starting salary is not much different from minimum salary.
00:45 Minimum salary is now 1,500.
00:48 The concept of minimum salary is that when there is minimum salary...
00:52 ...the starting salary is higher to distance it from minimum salary.
00:59 Because minimum salary is for non-skilled workers.
01:03 Not skilled.
01:04 But this minimum salary, the initial income...
01:09 ...is actually going down.
01:12 Because minimum salary is used as reference...
01:17 ...to pay, especially fresh graduates.
01:21 And young skilled workers.
01:26 So this is a phenomenon that requires a fresh foundation...
01:31 ...to correct this situation.
01:33 The salary of a business person...
01:37 ...set by the Bank of Indonesia is around 3,100.
01:43 3,092 ringgit, something like that.
01:45 The poverty rate is around 2,100.
01:50 50% of our workers' salary is below 3,000.
01:56 And our median salary is 2,600 more.
02:01 It means it's not too far from the poverty rate.
02:05 Just a little above the poverty rate.
02:07 And it's below the fair wages.
02:10 These data will be an important background for the government.
02:15 I know it's a big challenge for employers and so on.
02:20 But I think we have to find a way for us to resolve this.
02:26 The middle path that we think...
02:33 ...can be implemented practically in this country...
02:37 ...will also get support from employers.
02:41 Because if we make a foundation...
02:44 ...and employers reject it...
02:47 ...it's not going to go anywhere.
02:49 So I think it's a middle path...
02:52 ...that requires the commitment from the government and employers.
02:57 And because of that I'm hopeful that it will get the support of everyone.
03:04 So far, small and medium-sized companies...
03:08 ...with less than 50 employees...
03:12 ...have been informed about the basic model that we will develop...
03:20 ...to get their opinion.
03:22 This is a very positive view.
03:24 But it requires the commitment from the government.
03:28 That's what I have to convince the government...
03:33 ...that the government needs to allocate a certain amount of money every year...
03:39 ...to help increase the salaries of the workers.
03:45 (The End)
03:47 (Credits)
03:49 (Credits)
03:51 [BLANK_AUDIO]