Saturday, January 28, 2023

M’sian to implement minimum wage of RM1,500 despite complains from business groups

NewsM'sian to implement minimum wage of RM1,500 despite complains from business groups

The new minimum wage of RM1,500 will be implemented nationwide regardless of the situation, said Human Resources Minister Datuk Seri M. Saravanan.

However, he said the government will provide some leeway by deferring the implementation of the minimum wage rate to several employment sectors including the informal sector and companies with less than five employees when it comes into force.

“The prime minister (Datuk Seri Ismail Sabri Yaakob) has announced that May 1 will be the day for the implementation of the minimum wage in appreciation of employees. So, rain or shine, we will continue with this RM1,500 (minimum wage).

Source: Malay Mail

“What is important is that it is not based on my wishes, but we follow the act (the National Wage Consultative Council Act 2011) where the minimum wage must be reviewed every two years,” he said, according to Bernama.

Meanwhile, he revealed that there were a few parties who are taking advantage of the flexibility given by the government in the implementation of the minimum wage, which could ultimately prevent people from benefiting from it.

He then admitted that it is difficult to please all parties, especially employers, regarding the minimum wage implementation that will be enforced next month.

In March, Ismail Sabri announced that the minimum monthly wage will be raised to RM1,500 beginning of 1 May, but there are some employers and associations still asking the government to reconsider the matter until today.

Despite the move being welcomed by most wage earners, some were worried that this will cause another round of price hike as businesses transfers the increase in cost to consumers.

Nonetheless, there are still some businesses who are welcome the new minimum wage as businesses are seemingly to pick up following the relaxation of the SOPs.

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