ESTABLISHMENT OF MINIMUM WAGE IN THE EMPLOYMENT SECTOR ACCORDING TO MAQASID SYARIAH; COMPARATIVE STUDY OF MALAYSIA AND INDONESIA

Mohd Huefiros Efizi bin Husain; Aang Kunaifi; Ahmad bin Mahmood

doi:10.32806/currency.v4i2.1936

Authors

Mohd Huefiros Efizi bin Husain Senior Lecturer, Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Johor Branch Pasir Gudang Campus, Malaysia
Aang Kunaifi Senior Lecturer, Institut Agama Islam Al-Khairat Pamekasan, Indonesia
Ahmad bin Mahmood Senior Lecturer, Faculty of Management and Economics, Universiti Perguruan Sultan Idris, Malaysia.

DOI:

https://doi.org/10.32806/currency.v4i2.1936

Keywords:

Minimum wage; national standard; cost of living; income gap; and Maqasid syariah.

Abstract

Setting the minimum wage in every sector of employment is an effective measure of stability, protection of the welfare of low-income sectors from the effects of exploitation, and reducing the poverty gap. It aims to increase productivity and fight the uncertain cost of living caused by economic conflicts at the global level. However, there are still employment sectors that do not adjust the minimum wage due to increases in employer operating costs, potential inflation, and dependence on foreign workers. This leads to an impact on the mental health of workers and narrow employment opportunities for local people. Therefore, this study will compare the minimum wage settings in Malaysia and Indonesia according to the Maqasid Syariah perspective and propose effective measures to address each issue that arises. Qualitative methods are applied to achieve the objectives of the study through interviews and library studies from the studies of scholars. The results of the study found that the setting of the minimum wage is in line with the purpose of Maqasid Syariah to establish harmony and justice in developing the employment sector. This study has the potential to be used as a basis for guidance to each employment sector in managing the minimum wage of employees in accordance with the demands of Islamic law.

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