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AEON Raises Minimum Wage For Employees From RM1,200 To RM1,500 Ahead Of Govt's Mandate

Following the news, the company's name trended on Twitter today, 16 February, with some netizens saying that they will support its businesses even more from hereon.

Cover image via Berita Harian via AEON & AEON

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AEON Co (M) Bhd has increased the minimum wage of its Grade G employees from RM1,200 to RM1,500 per month effective from 1 January, it said in a statement

The decision came ahead of the government's mandate, in which the Ministry of Human Resources (MORH) announced last week, that the national minimum wage is expected to increase to "around RM1,500 a month" by the end of 2022.

"AEON Malaysia always prioritises the welfare of our employees and welcomes the recommendation from the Ministry of Human Resources," New Straits Times quoted the company as saying.

"Accordingly, the effective date of the new minimum wage by AEON Malaysia is earlier than the date recommended by the government, which is by the end of 2022."

The general merchandise stores (GMS) cum supermarket chain said the new RM1,500 salary per month is just the basic salary and does not include allowances or other incentives.

AEON said the move is in line with its AEON Sayap Bagimu's sustainability initiative, which aims to provide opportunities, encouragement, and support to stakeholders, especially those in need

Chief human resources officer cum director of corporate communication Kasuma Satria Mat Jadi said the decision was made based on employees' best interests and welfare to help alleviate the living cost while also supporting the government's recommendation.

"AEON Malaysia is supported by about 13,000 employees of various grades nationwide," she said.

"Known as 'AEON Warriors', they are the company's most valuable assets. Their welfare and livelihoods are our key priority."

The company had previously raised the minimum wage from RM1,100 to RM1,200 per month in February 2020 following the mandate of Budget 2020

It added that implementing the minimum wage hike is also in line with the United Nations' Sustainable Development Goals (SDG 8), where the focus is on providing good jobs and economic growth.

Image via Booking.com

Today, 16 February, the company's name trended on Twitter and has garnered over 41,000 tweets on the platform at the time of writing.

Many netizens lauded AEON for taking the lead in the government's aspiration to increase the minimum wage, with some saying that they will support its businesses even more from hereon.

Earlier this month, the Malaysian Employers Federation (MEF) said that raising the minimum wage to RM1,500 will derail the economic recovery:

During Pakatan Harapan's administration, the government said it will increase the minimum wage to RM1,500 within five years: