Home TA Online Scourge of low wages results in low EPF savings

Scourge of low wages results in low EPF savings

The only way to tackle this serious issue is to move to a living wage model

Follow us on our Malay and English WhatsApp, Telegram, Instagram, Tiktok and Youtube channels.

As early as 2018, I had called for a fundamental change from a minimum wage system to a living wage model.

In subsequent opinion pieces, I reiterated the argument that only a migration to a living wage model would ease the dual scourge of unsustainable incomes and low Employees Provident Fund retirement savings affecting many workers.

While those in the corridors of power gave two hoots to these opinion pieces, there appears to be an awakening of sorts among people like the human resources minister and the EPF CEO.

First, Human Resources Minister V Sivakumar said in Parliament that the government is studying the living wage model.

Second and more conclusively, EPF CEO Amir Hamzah Azizan hit the right button when he attributed the low EPF savings among many workers to their low wages.

Both these statements are refreshing. They have vindicated my argument that the only way to tackle this serious issue is to move to a living wage model from the present insufficient minimum wage system.

Without a doubt, low wages translate to low EPF retirement savings. This inevitably forces retirees to continue to seek employment, which ideally should not be the case.

Unfortunately, in the absence of an adequate social security net, senior citizens have no choice but to continue to seek employment, even if it pays insufficient wages

Given that the population is rapidly ageing, the government must urgently put in place an appropriate social security net, which should include post-retirement pensions.

Perhaps the massive funds, both in cash and assets worth billions of ringgit, at the disposal of the EPF, the Social Security Organisation (Socso) and other related funds could be consolidated and engineered for this purpose.

READ MORE:  Will the new wage model work for workers?

That said, the immediate concern should be to resolve the unrealistically low wages confronting the working class. Moving to a living wage system may well reduce the mismatch between low wages and the high cost of living, as well as ease the problem of low EPF retirement savings.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

AGENDA RAKYAT - Lima perkara utama
  1. Tegakkan maruah serta kualiti kehidupan rakyat
  2. Galakkan pembangunan saksama, lestari serta tangani krisis alam sekitar
  3. Raikan kerencaman dan keterangkuman
  4. Selamatkan demokrasi dan angkatkan keluhuran undang-undang
  5. Lawan rasuah dan kronisme
Support our work by making a donation. Tap to download the QR code below and scan this QR code from Gallery by using TnG e-wallet or most banking apps:
K Veeriah, a longtime Aliran contributor, has been a trade union industrial relations officer, involved mainly in collective bargaining and handling trade disputes, since 1978. He has also served as secretary of the Penang division of the Malaysian Trades Union Congress since 1991, after stints on the MTUC's national executive committee and general council
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x