Template-Type: ReDIF-Article 1.0
Author-Name: Dars, Grace Anthony
Author-Name-First: Grace Anthony
Author-Name-Last: Dars
Author-Email: gracedars@gmail.com
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Author-Name: Dars, Alexandar Anthony
Author-Name-First: Alexandar Anthony
Author-Name-Last: Dars
Author-Email: alexandar3890@gmail.com
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Author-Name: Silvarajee, Asvini
Author-Name-First: Asvini
Author-Name-Last: Silvarajee
Author-Email: asvini2496@gmail.com
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Author-Name: Mohamad, Shafi
Author-Name-First: Shafi
Author-Name-Last: Mohamad
Author-Email: shafi.mohamad@unitar.my
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Author-Name: Nor, Sarina Mohamad
Author-Name-First: Sarina Mohamad
Author-Name-Last: Nor
Author-Email: sarina@unitar.my
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Author-Name: Kanapathipillai, Kumaran
Author-Name-First: Kumaran
Author-Name-Last: Kanapathipillai
Author-Email: kumaran@unitar.my
Author-Workplace-Name: Faculty of Business, UNITAR International University, Malaysia.
Title: The Influence of Minimum Wage Policies on Work Engagement within the Manufacturing Sector in Kinta, Perak: The Mediating Role of Financial Security
Abstract: In this study, minimum wage policy has been investigated on its impact on work engagement of manufacturing sector employees in Kinta, Perak, Malaysia using financial security as a mediating variable. Even though Malaysia has legislated minimum wage to increase employee welfare, there is little research on its psychological and behavioural impact. The study explores the effects of three dimensions of minimum wage policy being wage level adequacy, wage implementation consistency, and wage policy transparency on work engagement independently as well as indirectly through financial security with the Conservation of Resources (COR) Theory. The research employed a quantitative research design based on employees aged 18-60 in years, and a total of 422 valid responses were obtained by stratified random sampling and were analyzed in SPSS and PROCESS Macro Model 4. Results show that financial security partially mediates all three dimensions to influence work engagement significantly and positively. The strongest direct effect among the predictors, and the most indirect influence from wage adequacy, was found in wage policy transparency, and less indirect influence from financial security. The policy implications are important for policymakers, HR practitioners, and industry leaders to consider raising wages that would improve financial stability and workplace engagement.
Keywords: Minimum Wage Policy, Work Engagement, Financial Security, Wage Implementation Consistency
Journal: International Review of Management and Marketing
Pages: 449-456
Volume: 15
Issue: 6
Year: 2025
Month: 10
DOI: 10.32479/irmm.20188
File-URL: https://econjournals.com/index.php/irmm/article/download/20188/9458
File-Format: application/pdf
Handle: RePEc:eco:journ3:v:15:y:2025:i:6:id:20188