Experts call for transparent monitoring of graduate starting salary guidelines

KUALA LUMPUR: The Starting Basic Salary Guidelines based on the Malaysia Standard Classification of Occupations (Masco) must be supported by transparent monitoring and reporting mechanisms to ensure employer compliance, an economic analyst said.

Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said that without clear enforcement mechanisms, employers could disregard the guidelines without legal consequences, leaving graduates unable to challenge low salary offers.

He said setting a starting salary of RM2,500 would not guarantee equity unless job duties, skill levels, and responsibilities were accurately assessed.

"Job classifications under Masco must be reviewed based on actual duties, not merely job titles stated in employment contracts.

"The government must also clearly define basic salary and allowances to prevent employers from including bonuses, overtime, or variable payments to obscure actual salary rates," he said.

He was commenting on the Human Resources Ministry's plan to draft guidelines for minimum wage policies and starting basic salaries for graduates and semi-skilled workers, as announced in the 2027 Budget.

Human Resources Minister Datuk Seri R. Ramanan said the guidelines would provide a reference for starting basic salaries by job category and qualification level, while amendments to the National Wages Consultative Council Act 2011 (Act 732) were being fine-tuned to make minimum wage mandatory for graduates.

Razman said pending the amendments, the government should establish a clear transition plan with annual compliance targets, salary rate reporting, and public disclosures of sector compliance levels.

He added that government-linked companies and government contractors should lead by example, with incentives such as procurement priority offered to compliant employers.

To ensure effective implementation, he recommended risk-based compliance audits, confidential complaint channels, and whistleblower protection.

On the e-Wages mechanism being fine-tuned by the ministry, Razman suggested integrating salary data with bank transactions, employment contracts, payslips, Employees Provident Fund, Social Security Organisation and tax records.

He said this would allow the government to cross-check promised salaries against actual payments, detecting late payments or underpayments.

"Automated risk analysis could help the Labour Department target inspections at high-risk employers. However, the system must have data security safeguards and verification procedures before enforcement action is taken," he said.

Meanwhile, Universiti Teknologi Mara (UiTM) Sabah branch senior lecturer Dr Jain Yassin said the government should provide transparent salary data by occupation, qualifications, sector, and location to help graduates evaluate job offers accurately.

"To address information gaps, the government could enhance the e-Masco portal by providing regularly updated salary information by occupation, qualifications, and skill levels," he said.

Jain added that the e-Wages mechanism should serve as an early warning system integrated with artificial intelligence (AI), payroll data, and labour market analysis to detect non-compliance systematically.

He also proposed appointing independent monitors, including professional bodies, university researchers, or labour economists, to conduct regular audits.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 2027 Budget on Oct 9, announced that the government agreed to raise the minimum wage from RM1,700 to RM2,000, effective June 2027, benefiting over four million workers.