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