Poverty Line Income and Implementation of Minimum Wage Policyin Malaysia

Poverty Line Income (PLI) is an important element to measure poverty and todetermine minimum wage rate in Malaysia. The purpose to measure poverty andimplement minimum wage policy is to ensure that the basic salary is sufficient tofulfil the basic needs of the low-income workers. The research defined thepoverty line income internationally and in Malaysia and its calculation. Theresearch shows the method to relate PLI with minimum wage policy todetermine whether the minimum wage rates in Malaysia is reasonable. Themethod of study implemented in the research is systematic literature review todetermine the key scientific contributions of a particular area. Malaysians inPeninsular Malaysia who earns current average salary lower than RM 900previously will gain from this minimum wage policy, because their currentaverage salary has increased to RM 900 per month. Same to Malaysians inSabah and Sarawak who can earn higher wages now, RM 800 per month ascompared to previously. Therefore, the minimum wage rates determined by thegovernment are reasonable and practical for Malaysians. The implementation ofminimum wage policy in Malaysia is still at the early stage. Malaysiagovernment has to proceed with its execution in order to generate a preciseconclusion over its practicability. Therefore, the practicability of minimumwage policy in Malaysia will be researched.