New min­i­mum pay to be an­nounced next year

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We know that the min­i­mum wages or­der must be re­viewed at least once in two years. The re­view will look at the abil­ity of the em­ployer to pay the min­i­mum wage which is a re­spon­si­bil­ity that is very chal­leng­ing to en­sure that the min­i­mum wage pol­icy meets all ob­jec­tives.

PUTRAJAYA: A new min­i­mum wage for Penin­su­lar Malaysia, Sabah, Sarawak and Labuan will be an­nounced next year, said Hu­man Re­sources Min­is­ter Datuk Seri Dr Richard Riot Jaem.

The move will close the min­i­mum wage gap for the pri­vate sec­tor whereby it is RM1,000 in Penin­su­lar Malaysia, and RM920 for Sabah, Sarawak and Labuan, he said.

Riot said the Na­tional Wages Con­sul­ta­tive Coun­cil (MGPN) had started mak­ing plans to re­view the Min­i­mum Wages Or­der 2016 to al­low the govern­ment to de­ter­mine the new min­i­mum wages rate in line with the coun­try’s cur­rent so­cio- eco­nomic de­vel­op­ment.

“We know that the min­i­mum wages or­der must be re­viewed at least once in two years. The re­view will look at the abil­ity of the em­ployer to pay the min­i­mum wage which is a re­spon­si­bil­ity that is very chal­leng­ing to en­sure that the min­i­mum wage pol­icy meets all ob­jec­tives.

“The set­ting up of a group of wage and min­i­mum wages re­ser­achers will have a pos­i­tive ef­fect which will al­low the govern­ment to pro­vide ad­e­quate so­cial pro­tec­tion to work­ers through­out the coun­try.

“The en­force­ment of the min­i­mum wages is an im­por­tant as­pect which will ben­e­fit the em­ploy­ees es­pe­cially those with low in­come in the B40 cat­e­gory,” he said.

Riot was speak­ing in a press con­fer­ence held af­ter pre­sent­ing the ap­point­ment let­ters to 25 mem­bers of the Na­tional Wages Con­sul­ta­tive Coun­cil who were ap­pointed for the pe­riod Oct 1 to Sept 30, 2020 to en­sure the con­ti­nu­ity of im­ple­men­ta­tion for the min­i­mum wages pol­icy.

He said clos­ing the min­i­mum wages gap between em­ploy­ees in Penin­su­lar Malaysia and in Sabah, Sarawak and Labuan was grad­u­ally be­ing re­alised with the ap­point­ment of two mem­bers of the MGPN from the Sarawak and Sabah State Sec­re­tary’s of­fices.

“The re­view will take into con­sid­er­a­tion the cost of liv­ing as well as the op­er­a­tions cost which have to be borne by the em­ployer who man­ages to close the gap in in­come in Malaysia.

“Pre­vi­ously, the min­i­mum salary in Penin­su­lar Malaysia was RM900 while in Sabah, Sarawak and Labuan, it was RM800. In 2016, we closed the gap to RM1,000 ( Penin­su­lar) and RM920 ( Sabah, Sarawak and Labuan).

“One day, the salary in both cat­e­gories will be on par. This is still be­ing stud­ied by the Min­i­mum Wages Tech­ni­cal Com­mit­tee and the MGPN be­fore it is tabled to the Cabi­net,” he said.

Riot said as of June, 98 per cent of em­ploy­ers in 142,151 statu­tory checks be­ing car­ried out by the Labour Depart­ment had com­plied with the Min­i­mum Wages Or­der. — Ber­nama

Datuk Seri Dr Richard Riot Jaem, Hu­man Re­sources Min­is­ter

Riot de­liv­ers his speech at the cer­e­mony . — Ber­nama photo

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