Govt Proposes Salary Transparency in Job Ads to Address Declining Graduate Wages

According to NST, in response to the issue of declining wages among degree holders and to empower graduates in their job search, the government has put forth a proposal for employers in both the public and private sectors. The suggestion is to display the salary ranges offered in job advertisements. The aim is to provide greater transparency, enabling graduates to make more informed decisions when considering job offers.

Associate Professor Dr. Ahmed Razman Abdul Latiff, Director of the MBA programme at Putra Business School (PBS), supports this proposal, emphasizing that it will enable graduates to compare salary amounts and choose higher-paying positions. He advocates for all employers, including those in federal and state governments, statutory bodies, and the private sector, to be required to disclose salary ranges for graduates.

This proposal comes in the wake of concerns raised by Minister of Economy Rafizi Ramli, who noted that starting salaries for degree holders were not significantly different from the minimum wage for unskilled workers, which is RM1,500 per month. Rafizi emphasized that starting salaries for degree holders should be substantially higher than the minimum wage to differentiate the value of a degree.

However, initial statistical findings reveal that starting salaries are close to the minimum wage threshold. In light of this, Dr. Ahmed Razman suggests the creation of a dedicated online portal to display various job positions and their corresponding average salary rates. This portal would be a reference for graduates when assessing suitable salary rates for the positions they are applying for upon entering the workforce.

The aim is to avoid situations where employers may take advantage of graduates and offer low salaries. Dr. Ahmed Razman's proposal promotes fair compensation practices in the job market.

Economic expert Professor Emeritus Dr. Barjoyai Bardai sheds light on one of the reasons behind low starting salaries for graduates, citing a perception among some employers that graduates lack the desired skills. As a result, these employers may offer lower salaries due to the belief that additional training will be required for these graduates. Professor Bardai contrasts this practice with other professions, like medicine, where even trainee doctors receive salaries comparable to medical officers for similar duties.

The government's proposal strives to create a level playing field for graduates, ensuring fair opportunities and transparency in the job market. As discussions continue, policymakers and stakeholders will examine the potential impact of this proposal on the employment landscape, aiming to foster a more equitable environment for graduates in their pursuit of fulfilling careers.

Experience fast and efficient hiring by posting job ads with us! Get the best talents in just 72 hours!