Good News For Underpaid Workers In January 2014
Congruent with Najib's dream of making Malaysia a high-income nation, underpaid workers here will get a pay raise thanks to the newly gazetted minimum wage.
By Mei Mei Chu — 04 Nov 2013, 01:45 PM — Updated over 10 years ago
On 1 May 2013, PM Najib Made A Historic Move To Implement Minimum Wage To Support Low Income Households
Malaysia has introduced a minimum wage for the first time in a move to support low income households and amid speculation that the government may call elections soon.
About 3.2 million such workers are expected to benefit from the newly announced introduction of the country’s first minimum wage, part of the government’s plan to transform Malaysia into a high-income nation.
nytimes.com"The introduction of the minimum wage is a historic moment for Malaysia," said Prime Minister Najib Razak.
"The lowest-paid will now be guaranteed an income that lifts them out of poverty and helps ensure that they can meet the rising cost of living."
On 1 May 2013, PM Najib Made A Historic Move To Implement Minimum Wage To Support Low Income Households
Image via 1malaysia.com.myThe Minimum Rate Is Set At RM900 For Peninsular, And RM800 For West Malaysia
Private sector workers in peninsular Malaysia will receive a minimum salary of 900 ringgit ($297; £183) a month.
Workers in the states of Sabah and Sarawak will get 800 ringgit.
Minimum Wage In Malaysia Will Be Fully Enforced Nationwide In January 2014
“A large number of employers from almost all sectors in the country have given explanation on their inability (to implement the system) and requested for deferment and we have postponed it till Dec 31 this year. The minimum wage will be fully enforced in January next year throughout the country,” Human Resource Minister Richard Riot told Bernama.
The Minimum Wage Order 2012 was to be enforced on Jan 1, 2013 with the rate to be studied every two years. However, after requests from 400 applications from companies seeking for the date to be pushed to Dec 31, it was postponed.
theborneopost.com
The Implementation Of Minimum Wage Will Apply For ALL Employers Regardless Of Location
Riot said the implementation of the minimum wage system would apply to all employers regardless of location of their business activities.
“Whether their business are in townships or anywhere, they are not exempted from this implementation,” he said.
Large companies employing more than 150 workers in manufacturing or more than 50 in non-manufacturing functions should have started paying minimum wage on Jan 1 this year.
The Implementation Of Minimum Wage Will Apply For ALL Employers Regardless Of Location
Image via themalaysianreserve.comMinimum Wage Will Have A Great Effect For Workers In Rural Areas
The Rate Is Set At RM900 For Peninsular, And RM800 For West Malaysia
Image via themalaysianinsider.comTerence Gomez, a professor in the economics faculty at the University of Malaya, said the 900-ringgit monthly wage would be more significant for workers in rural areas than those in urban centers like Kuala Lumpur, where the cost of living has risen steeply in recent years. He added that in Malaysia, “the rural vote is what puts the government in power.”
akamaihd.netShamsuddin Bardan director of the Malaysian Employers' Federation added that the scheme will result in wages rising between 40% to 90% in places such as Sabah and Sarawak increasing the cost of doing business there.
Shamsuddin Bardan, executive director of the Malaysian Employers Federation, said some companies might have to increase wages by as much as 100 percent. For instance, he said, some plantation workers in Sabah are currently paid about 400 ringgit a month, but that would increase to 800 ringgit under the new wage structure.
nytimes.com