PUTRAJAYA: Prime Minister Datuk Seri Najib Razak will announce the minimum wage for private sector workers on Monday night here.
The Human Resources Ministry said in a statement the minimum wage would boost the wages of thousands of workers.
The policy will benefit 3.2 million workers in small- and medium-enterprises who on average earn less than RM700 a month. They represent 33 per cent of the workforce who live below the poverty line of RM763.
Employee and employer representatives had reached a consensus on the minimum wage rate, said to be a win-win situation for all, the ministry said.
Most multinationals and bigger local firms have pay schemes that are higher than the proposed minimum wage.
The ministry said: "A minimum wage scheme will enable thousands of workers to lead a better life and be more diligent and efficient."
Although the policy is expected to strengthen the purchasing power of those in the low-income bracket, the ministry said the rise in consumers' buying power might result in the higher prices of goods.
"This is a normal reaction in any economy worldwide," it said.