Human Resources Minister M. Kulasegaran launched Malaysia’s first ever National Wage Index (NWI). The NWI was developed as a guideline or benchmark for both employers and employees to measure salary changes in the national labour market from time to time.
It is a part of eleven labour market consolidation initiatives under the 11th Malaysia Plan (11MP) that prioritises the boost of productivity, job opportunities and the growth of salary ranges in a timely manner parallel to the growing of the economy.
Acts as a benchmark
Employees can utilise the NWI as a benchmark for their salaries and to increase their bargaining power. They can refer to it to understand more about wage trends in the labour market.
While for employers and investors, they can use the National Wage Index to set salary structure based on specific jobs.
Access via the Institute of Labour Market Information and Analysis (ILMIA)
The wage index can be accessed via the ILMIA portal. It will be published by the ministry on a quarterly basis and the second issue is expected to be published in the second quarter of 2019.
First time in Malaysia’s 62-year history
The National Wage Index launched by Human Resources Ministry marked as the first time ever in Malaysia’s history. Although the NWI is not compulsory and functions more like guidelines, it encompasses entire industries and is more accurate. Other developed countries also use a similar system.