Employers may not be allowed to downgrade job classifications or qualifications to avoid paying the proposed minimum starting salary for graduates if amendments to the National Wages Consultative Council Act 2011 (Act 732) are implemented.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said the proposed amendments would incorporate educational qualifications as a factor in determining mandatory minimum starting salaries for graduates in the future.
“With this element included, employers cannot easily disregard a worker’s qualifications when determining their job position,” he said during Minister’s Question Time in the Dewan Rakyat on Wednesday.
He added that the Human Resources Ministry (Kesuma) aimed to establish a clearer salary structure based on workers’ qualifications and skills.
Graduate Underemployment Remains A Concern
Khairul Firdaus also cited the Graduate Statistics Report by the Department of Statistics Malaysia (DOSM), which showed that the rate of skill-related underemployment among graduates declined slightly from 32.4% in 2023 to 32.2% in 2024.
He said micro, small and medium enterprises (MSMEs) needed to improve productivity, digitalisation, automation and workforce skills development.
“The government aims to reduce skill-related underemployment to 30% by 2030,” he said.
To achieve this target, the ministry is continuing to implement short- and long-term intervention strategies to better align the labour market with jobseekers’ qualifications and skills, helping them secure employment suited to their expertise and current market demand.
RM2,500 Starting Salary Targeted From June 2027
Responding to a supplementary question from Syerleena Abdul Rashid (PH-Bukit Bendera) on when the amendments to Act 732 would be tabled, Khairul Firdaus said the National Wages Consultative Council was updating its guidelines on basic starting salaries based on the Malaysia Standard Classification of Occupations (MASCO).
He said the guidelines would be published alongside the implementation of a new Minimum Wage Order, which is scheduled to take effect in June 2027.
The planned measures include a basic starting salary of RM2,500 per month for graduates and semi-skilled workers, as announced under Budget 2027.
