Dear members,

RE: CONSUMER PRICE INDEX (CPI)

Kindly refer to the latest CPI table obtained from the Statistics Department of Malaysia. This CPI table will be useful in determining an approximate percentage for salary adjustments if you are currently negotiating your collective agreement.

CONSUMER PRICE INDEX MALAYSIA
(TOTAL)
( 2010 = 100 )

It was held in Industrial Court Award No 117/82 that salary increases ought to be based on two thirds of the percentage increase in CPI over the preceding three years. Thus, if you are negotiating a CA to be effective from 1 January 2013, then you need to know the percentage change in the CPI since January 2010. The CPI (January 2013 = 105.9, January 2010 = 99.4)

The percentage change is therefore

Two thirds of this is approximately 4.35%

Victor Gan
Legal Advisor
email: [email protected]

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