Human Resources Minister Launches National Wage Index To Measure Salaries

Human Resources Minister M. Kulasegaran has launched the first National Wage Index (NWI) on 19th February 2019. The NWI is the culmination of a research that has taken the better part of two years at least.

Kulasegaran said the index will be a useful market indicator to measure changes in wages for employees, alongside other economic considerations such as the productivity index and the Consumer Price index.

At the launch, the minister said “It can be a guide for employers and investors in drawing up the structure and level of wages for certain jobs, besides being an input for human resource policies.”

About NWI

Based on the participation of 3,000 private sector firms around Malaysia, NWI is the brainchild of a study by the Ministry of Human Resources in November 2016.

The research was conducted by the Institute of Labour Market Information and Analysis. The index covers 169 different types of occupations that makes up roughly 80% of the main jobs in Malaysia.

A Benchmark for Employees

The minister said the index’s transparent and open analysis of the workforce also means it can be used as a benchmark for other issues, including the bargaining power of workers.

“It will also be used by workers’ associations, thereby increasing the collective bargaining power of workers. This marks the first time ever in Malaysia’s 62-year history that such an index has been launched,” he added.

M. Kulasegaran, Human Resources Minister. Credit: Malay Mail / Miera Zulyana

Before NWI, employers used their own internal systems to measure an employee’s productivity and subsequent salary increments.

Kulasegaran explained that the even though it is not compulsory and works more like a guideline, the index encompasses entire industries and as such is more accurate. He also said that other developed countries use a similar system.

Providing more opportunities

The index is a stepping stone for the national workforce, but Kulasegaran said there are more to be done.

“For example we should encourage more women to join the workforce, especially mothers. Likewise we should give more chances to employees over 60 years old due to their work experience, perhaps by granting them more flexible working hours,” Kulasegaran added.

The Human Resources Minister also said that he would like to see more opportunities given to disabled persons to join the workforce.

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Source: Malay Mail

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