Lower the qualifications, lower the pay? Malaysia plans safeguards for graduate salaries

The government is proposing safeguards to prevent employers from lowering job qualification requirements to avoid paying the planned RM2,500 starting salary for graduates and semi-skilled workers. — File picture by Firdaus Latif

First Published: Wednesday, 28 Oct 2026 2:18 PM MYT

Last Modified: Wednesday, 28 Oct 2026 2:19 PM MYT

KUALA LUMPUR, Oct 28 — Employers cannot arbitrarily lower job qualification requirements based on employees’ educational qualifications to avoid paying the stipulated starting salaries 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 amendments would incorporate educational qualification levels to enable the mandatory setting of minimum starting salaries for graduates in the future.

“Once this element is incorporated, employers cannot simply or arbitrarily disregard employees’ qualifications when determining their positions,” he said during the question-and-answer session in the Dewan Rakyat today.

He was responding to a supplementary question from Wan Razali Wan Nor (PN-Kuantan), who raised concerns that employers might lower the qualification requirements for positions from degree level to diploma or Sijil Pelajaran Malaysia (SPM) level to avoid paying the stipulated starting salaries for graduates.

Wan Razali also asked whether the government had taken steps to engage with public and private higher education institutions to ensure that the programmes they offer are aligned with labour market demands.

In response, Khairul Firdaus said the Department of Manpower (JTM) assessed the effectiveness of training programmes based on several aspects, including the suitability of training standards and content to industry needs, the use of more than 2,000 National Occupational Skills Standards (NOSS) as the basis for curriculum development, and industry involvement in training implementation.

The assessment also took into account the balance between theory and practical training, workplace training, skills upgrading in new technologies, and workers’ ability to adapt to changes in job functions and current technology.

Responding to a question from Syerleena Abdul Rashid (PH-Bukit Bendera) on when amendments to Act 732 would be tabled to make the implementation of a RM2,500 starting salary mandatory, he said the National Wages Consultative Council (MPGN) was updating the basic starting salary guidelines based on the Malaysia Standard Classification of Occupations (MASCO).

He said the guidelines would be published alongside the implementation of a new Minimum Wages Order, which would take effect in June 2027 and include a basic starting salary of RM2,500 per month for graduates and semi-skilled workers, as announced in Budget 2027. — Bernama