Gamuda Berhad will increase its minimum wage to RM1,600 for its foreign workers, effective May 1, 2022. In a statement, the Malaysian-based global engineering, property and infrastructure company said it is timely to revise its internal minimum wage policy for its workforce across the group, in line with its commitment to make changes for the better and to mitigate against worsening social inequity.
“We will also be increasing the entry level pay for fresh graduates joining the Gamuda Group from RM3,300 to RM3,500 for engineers, and from RM3,000 to RM3,200 for non-engineering graduates. “We have reviewed these levels to ensure that our entry level offers are competitive and within the top quartile of our industry to enable our group to continuously attract and develop the necessary talent for our business growth,” it said.
Gamuda said the minimum wage and graduate entry level pay increases raises the floor for the group’s baseline pay and consequently its workforce in the immediate pay bands above this (up to RM5,000) will also enjoy a cascaded pay increase to adjust for internal equity.
Gamuda added that its long-standing policy has been to provide accommodation to foreign workers at purpose-built centralised labour quarters (CLQs) at no cost to them. It said the CLQs have standard design specifications to ensure that the workforce is housed comfortably and safely with access to amenities such as communal kitchens, laundry, sundry shops and medical facilities as well as recreational facilities like futsal courts, where space permits. Gamuda said that while it has ensured that its own directly hired workers are not exposed to long-term bondage as it covers their agent or middlemen fees, the company will work with extended supply chain and sub-contractors in the next two years to align them with its requirements.
