KUALA LUMPUR: The government is proposing that minimum wage be increased to RM1,200 per month in major urban areas beginning next year.
Finance Minister Lim Guan Eng said this is to help improve the lives of the people, especially those in the lower income group.
“In January 2019, the government increased the minimum wage to RM1,100 per month.
Therefore, to address the needs of workers and employers in light of the rising cost of living in major cities, the government proposes that the minimum wage be increased to RM1,200 per month only in the major urban areas by 2020,“ he said in his Budget speech in Parliament today.
Besides that, he said the government aims to modernise the labour market by improving on working conditions for the workers by reviewing the Employment Act 1955.
“These improvements include upgrading the maternity leave from 60 days to 90 days starting from 2021 and extending overtime pay eligibility for people earning less than RM2,000 to RM4,000 a month.
“It also covers improving handling of sexual harassment complaints in terms of protection and procedures and establish provisions on the prohibition of discrimination in occupations such as religion, race or gender,“ he said.