Have a degree? Get higher salary. To be made mandatory… Do you agree?

Have a degree? Get higher salary. To be made mandatory… Do you agree?

From a degree holder’s point of view, I would not want a lower pay or even the same pay as a diploma holder or a SPM school leaver. I have studied longer, spent more time in doing assignment work. Feel the stress of more exams. I also know a lot more since I have specialized in a certain field for my degree versus a more general qualification. So, the government should help me get a salary I am entitled to.

From the employers point of view, they would want to pay the person based on their contribution to the company or to the team. Truth is, if the person is contributing more and I pay the person less, then very soon the person would leave for another role elsewhere. So, demand versus supply do work in the job market. If they are forced to pay higher, then would they not just hire someone with lesser qualifications instead?

Read on about the government’s intention below.

Article in themalaysianreserve.com The government plans to amend the National Wages Consultative Council Act 2011 to make minimum starting salaries for graduates mandatory based on their education levels and qualifications.

Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said the proposed amendment would introduce education level as a factor in setting minimum wages, as the existing law did not specifically provide for minimum wage rates based on academic qualifications.

“The ministry will amend the National Wages Consultative Council Act 2011 by introducing the element of education, to allow the payment of minimum wages for graduates to be mandatory in the future,” he told Dewan Rakyat today. Do read the full article here: Article in themalaysianreserve.com

My personal experience in my first job

In 1998, I started applying for jobs in May, right after I arrived in Malaysia after my first degree in the UK. I got a job in July and after a few months of working, I realized that my peer who has joined 3 years earlier has a job title which is a level lower than me. I realized later that in the company which was a Japanese multinational, qualification level will also determine the salary range too. A degree holder will have a higher salary range than a diploma holder. The expectations are also slightly different but our role and responsibilities are similar. In other words, the company was already paying people based on qualifications way back in 1998.

I do believe anyone with the right mindset, regardless of qualification will soon be paid higher than most people after some time in the working world. If they are capable, they can easily find another role willing to pay them higher. Starting the job with a minimum salary by law does not guarantee the person will be promoted in the future.

So, my advice to everyone is this, “If what you did last year is the same as this year and you are paid higher this year, you should be worried.” This is because it meant that our productivity / contribution has reduced for the money we are paid. Anytime someone could do the same role as us for a lower pay, then the company may decide to move their operations elsewhere too. By then, there’s nothing to argue on higher pay…

As for what the government would eventually do, ‘Whatever will be, will be.” We adapt.

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