Forum on minimum wage in Sabah
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.