MINIMUM WAGE REVIEW EVERY 2 YEARS

Next review to be done in 2018, says deputy minister

LAILI ISMAIL

AND ARFA YUNUS KUALA LUMPUR news@nst.com.my

THE minimum wage order will be reviewed at least once every two years. Deputy Human Resources Minister Datuk Seri Ismail Abd Muttalib said the move was in accordance with the National Wages Consultative Council (MPGN) Act 2011 (Act 732), where the review would be conducted by the council.

He said the minimum wage order review would be implemented next year.

“The government conducted the minimum wage order review in 2012. After careful consideration by MPGN, the government agreed to increase the minimum wage from RM900 monthly in the peninsula to RM1,000; and from RM800 monthly in Sabah, Sarawak and Labuan to RM920 starting July 1, last year.

“The next review will be done next year,” he said in reply to a question from Datuk Hasbullah bin Osman (BN-Gerik) at the Dewan Rakyat yesterday.

When asked if the government could set a specific amount of minimum wage to commensurate with the cost of living, Ismail said there was no definite way to set the minimum wage as the cost of living was always changing.

“I can’t tell the specific number. Even the prime minister can’t tell you that. We have to look at the national market, which is why we have MPGN and the Labour Department.

“They will convene with employers and experts to review the minimum wage to see whether the current amount is relevant.

“We can’t simply set a minimum wage. There are criteria to be considered, such as the state of the economy and whether employers can afford to pay such an amount,” he told the New Straits Times.

To a supplementary question from Datuk Abdullah Sani (PKRKuala Langat) on the number of employers who refused to adhere to the minimum wage order, Ismail said 317 employers had been charged in court for failing to follow the law.

The Malaysian Trades Union Congress welcomed the move and is looking forward to discussing with MPGN to create a win-win situation for employers and employees.

Its president, Abdul Halim Mansor, said the reviewing of the minimum wage order was in accordance with the act. Additional reporting by Beatrice Nita Jay