KUALA LUMPUR, Nov 14 — Chief Statistician Datuk Seri Mohd Uzir Mahidin today cautioned employers against misusing data from the new Basic Expenditure for Decent Living (PAKW) indicator to justify inadequate wages, particularly if the cost of living in their area appears lower than in other regions.

Uzir urged employers not to interpret the data negatively to deny employees fair compensation.

He emphasised that the PAKW data serves several beneficial purposes and should be used to promote progress and improve the living standards of Malaysians.

“Of course, when hiring, agreements are made regarding annual salaries, allowances, and other terms. We can already see it from there.

“I hope companies do not misuse this data,” Uzir said, speaking after the Department of Statistics Malaysia’s (DOSM) townhall programme today.

The PAKW indicator, unveiled earlier this month, is designed to provide a clearer picture of the financial costs associated with living a decent life.

It calculates the cost of living based on geography, household size, and age group, allowing the public to assess monthly expenditures for essential goods and services.

Following the launch on November 2, DOSM explained that the PAKW is intended to assist policymakers and empower households.

Uzir had previously noted that the indicator could also help unions and workers set acceptable salary benchmarks, among other uses.

This comes amid growing concerns over the government’s plans to rationalise RON95 fuel subsidies, a move that many middle-income earners fear could impact them.

The government is also revising the definition of the T15 — the top 15 per cent of households exempted from certain subsidies.

Minister of Economy Rafizi Ramli had previously stated that factors such as household size and location would be considered in determining eligibility for government assistance, as part of an overhaul of the existing welfare distribution system.

By incorporating these variables, policymakers aim to design assistance programs with fewer exclusions. For the middle class, this could mean continued eligibility for some forms of government aid.

Meanwhile, households can use the PAKW indicator to make more informed financial decisions.