SUBANG JAYA: The Malaysian Trades Union Congress (MTUC) has called on Prime Minister Datuk Seri Najib Abdul Razak to announce a monthly RM300 cost of living allowance (Cola) for private sector employees to meet the rising costs of living.
MTUC secretary-general Gopal Kishnam said there is a need for a Cola policy in the private sector as the cost of goods has gone up by 20% to 30% since the implementation of the Goods and Services Tax (GST).
The figures are based on those given in the Federation of Malaysian Consumers Association (Fomca) website, he added.
“It’s difficult to survive on just the RM900 minimum wage,” he told a press conference here today, adding that under the Minimum Wage Act, which came into effect in January 2013, the government is supposed to review the minimum wage every two years.
He said the MTUC’s memorandum on Cola was submitted to Najib and the Human Resources Ministry several months ago.
He also said the government needs to explain to the people what it intends to do with the money collected from GST so far.
On the abolishing of the 10% service charge imposed on consumers by the food and beverage industry and hotels which did not have collective agreements, he said that the money goes to the workers and therefore there is a need to reconsider the decision.