Minister Sawang aims for consensus on minimum wage amid economic concerns

The tough economic climate may prompt concerns in the private sector over a potential new minimum wage after May 31st, 2025.

Private sector businesses may resist the minimum wage review committee's recommendations if they believe the changes will negatively impact their operations.

Labor and Industrial Relations Minister Kessy Sawang, who is leading the review acknowledged that private sector businesses rely on profitability to sustain their operations, unlike public servants.

"The public servants are quite different, and other factors also play a role in this,” Sawang said.

Sawang said the minimum wage review committee will push for higher wages and also noted the private sector's concerns about the cost of doing business.

She said the government’s goal is to balance these interests.

“The minimum wage is not a negotiation. It’s a consensus, and that’s the strength of this process," Sawang said.

She said that in order to reach an understanding, she resurrected National Tripartite Council, which had been inactive for five years.

She said this ensures they facilitate dialogue among different sectors and bring together various parties to discuss and agree on a minimum wage that works for everyone.

“We had meetings last year, and this forum is where we bring everyone together to address issues and reach consensus,” Sawang said.

"It’s better to reach consensus than to negotiate," Sawang said.