PM Urges Private Sector to Review Salaries After Civil Servants' Pay Hike
Prime Minister Datuk Seri Anwar Ibrahim has urged the private sector, particularly highly profitable companies, to review their salary structures and offer more reasonable compensation to employees. This call comes in light of the recent public service salary reforms aimed at increasing wages for civil servants. Under the new reforms, low-grade public workers will receive a minimum salary of RM2,000 per month, while those in the implementing and professional groups will see a 15% increase, and those in top management and professional roles will get a 7% raise. The salary adjustments will be implemented in two phases, starting in December this year and concluding in January 2026.
Anwar emphasized that private companies with substantial profits have no justification for paying low salaries, especially given the government's efforts to improve public sector wages. He noted that the salary increases are part of a broader transformation focused on accountability and performance, moving away from a traditional time-based approach. Additionally, Human Resources Minister Steven Sim has echoed Anwar's sentiments, urging private companies to participate in the progressive wage pilot project and announcing that the National Wage Consultative Council's recommendations on the new minimum wage are being prepared for Cabinet approval.
