Public and the private sector have been urged to gradually increase the salaries of their employees as the goods and services tax (GST) will be implemented in April next year.

KPMG Malaysia’s newly appointed managing partner Johan Idris suggested that an increase of six per cent of the salaries per annum would help especially with the rising cost of living, Bernama reported.

“Six per cent would be a good example to begin with especially after the GST implementation, new electric tariffs, petrol subsidy cuts and new toll rates," he was quoted by Bernama after the launch of the second-edition of the 'Study on Non-Executive Directors 2013 - Profile and Pay' publication.

He said as a developing country, GST was inevitable in Malaysia.

When tabling the 2014 Budget in the Dewan Rakyat on Oct 25, Prime Minister Datuk Seri Najib Tun Razak had announced that GST at a rate of six percent would be implemented in the country from April 1, 2015.

He also proposed the abolishment of sales and service tax.