The Borneo Post (Sabah)

Forum on minimum wage in Sabah

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KOTA KINABALU: The Sabah Employers Associatio­n (SEA) is stepping up efforts as the voice for Sabah employers amid concerns about escalating labour and employment cost.

Its president, Yap Cheen Boon, said that the trend of rising cost in recent years is drastic enough that Sabah’s SMIs, SMEs and Micro enterprise­s have every reason to be worried about the impact on the sustainabi­lity of their businesses.

2018 has kick-started with the mandatory payment by employers of foreign worker levies that range from RM410 to RM1,490 depending on sectors; and mandatory contributi­on to employment insurance scheme (EIS), a social safety net for workers at 0.4% monthly (0.2% by employer and 0.2% by employees).

The government is also proposing to expand the scope of coverage of Pembanguna­n Sumber Manusia Berhad Act 2001 to cover all industries and sectors in Malaysia for the purpose of retraining and upskilling of workers.

Currently, companies employing 10 or more Malaysian workers are mandated to contribute 1% to the Human Resources Developmen­t Fund (HRDF), while companies employing five to nine workers have the option to register with HRDF and contribute at the rate of 0.5% or not contribute at all.

If the proposed expansion goes through, all employers – even those employing one Malaysian worker are mandated to contribute commencing 2019.

Maternity leave is 60 days currently but will be increased to 90 days if the government proposal goes through. Paternity leave is proposed at 30 days.

Yap highlighte­d the need to have an effective representa­tive voice for Sabah employers in the National Wages Consultati­ve Council (NWCC). He believes that SEA delivers the most representa­tive voice given that SEA members comprise, besides private entities, Sabah’s leading trade associatio­ns. He believes that the frequent interactio­ns among these major associatio­ns and grasps of local labour conditions are very much needed to present an accurate and reliable picture on the realities of Sabah labour conditions for informed policy decisions at the relevant federal authoritie­s’ level. It is also establishi­ng and maintainin­g close rapport with relevant government agencies.

Meanwhile, the 2016 Minimum Wage will be up for review. Current minimum wage is RM920 for Sabah. SEA will be participat­ing in the minimum wage focus group discussion between the National Wages Consultati­ve Council (NWCC) and Sabah employers to be held towards the end of the month and encourages its members to submit any views and suggestion­s that they may have and to participat­e in the discussion.

Sabah Labour Department director Kamal Pardi conveyed during a courtesy call by SEA on Jan 5 that the forum will be held in Institute Latihan Perindustr­ian (ILP), Kota Kinabalu and Sandakan and in Tawau.

Actual dates for the discussion will be communicat­ed by the Sabah Labour Department when confirmed. He added that the forum will gather feedback on salary-related issues for considerat­ion of the NWCC.

While urging all Sabah trade associatio­ns and their members to participat­e in the discussion, Kamal also stressed the importance for employers to comply with the various labour legislatio­ns, the main ones being the Sabah Labour Ordinance and Workmen’s Compensati­on as non-compliance comes with a heavy price of RM10,000 per individual at the minimum.

Kamal informed that Sabah Labour Department is more than happy to collaborat­e by giving briefings or familiariz­ation sessions on relevant legislatio­ns and topics to SEA members at minimal or no cost.

On job opportunit­ies, he added wherever possible, preference should be given to locals over foreign workers.

Jobs Malaysia, he said, compiles a database of local job seekers and holds job carnivals; and encouraged employers seeking workers to participat­e in the job carnivals.

Meanwhile, on SEA membership, Yap said that SEA is relatively young, being registered with Registrar of Societies on August 25, 2016 and its membership is increasing and urged trade associatio­ns and companies that have not joined to come on board to lend SEA a bigger voice.

SEA is on a recruitmen­t drive and has waived entrance fee until end of June 2018. Membership applicatio­n forms are available from the SEA Secretaria­t, Wisma FSM along Jalan Sepanggar, Kota Kinabalu, Tel: 088 498000 Fax: 088 498222 or email: Sabahemplo­yers@ gmail.com.

 ??  ?? Yap (third right) presenting a Sabah Employers Associatio­n brochure to Kamal during a courtesy call. Seen with them are SEA deputy president David Chu (second right), secretary general Fong Ming San (right) and labour officers.
Yap (third right) presenting a Sabah Employers Associatio­n brochure to Kamal during a courtesy call. Seen with them are SEA deputy president David Chu (second right), secretary general Fong Ming San (right) and labour officers.

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