Najib announces
minimum wage for private sector
Putrajaya: Malaysia will implement a minimum wage for the private
sector of RM900 or RM4.33 an hour for peninsular and RM800 or RM3.85 an hour
for Sarawak, Sabah and Labuan.
Prime Minister Datuk Seri Najib Razak said the
minimum wage scale would cover all economic sectors except for domestic
services such as maids and gardeners.
"Once the Minimum Wage Order is gazetted, employers have six months to implement it.
"However, for employers of micro enterprises, they are given 12 months to do so as we understand they will need more time to make necessary adjustments and also to ensure their businesses will not be affected," he said.
The 12-month extension, however, will not apply to professional firms such as clinics, dental clinics, law firms, architecture firms and consultation firms, although they only have five staff or less.
Najib believed the time given to make the transition would be ample for employers to restructure their workers' salary scales and their operations.
The policy will benefit some 3.2 million workers in small- and medium-enterprise sector who earn on average less than RM700 a month.
They represent 33 per cent of the workforce who live below the poverty line of RM763.
The prime minister said the government was aware of employees' demand to set the minimum wage higher between RM1,200 and RM1,500.
"But for a start and as what were proposed by the National Wages Consultative Council and based on World Bank's study, the minimum wage cannot be set too high.
"If it is set above RM900 (basic salary), the impact can be detrimental to the nation's economy, labour market and foreign investment into Malaysia.
"Once the Minimum Wage Order is gazetted, employers have six months to implement it.
"However, for employers of micro enterprises, they are given 12 months to do so as we understand they will need more time to make necessary adjustments and also to ensure their businesses will not be affected," he said.
The 12-month extension, however, will not apply to professional firms such as clinics, dental clinics, law firms, architecture firms and consultation firms, although they only have five staff or less.
Najib believed the time given to make the transition would be ample for employers to restructure their workers' salary scales and their operations.
The policy will benefit some 3.2 million workers in small- and medium-enterprise sector who earn on average less than RM700 a month.
They represent 33 per cent of the workforce who live below the poverty line of RM763.
The prime minister said the government was aware of employees' demand to set the minimum wage higher between RM1,200 and RM1,500.
"But for a start and as what were proposed by the National Wages Consultative Council and based on World Bank's study, the minimum wage cannot be set too high.
"If it is set above RM900 (basic salary), the impact can be detrimental to the nation's economy, labour market and foreign investment into Malaysia.
Source
: News Straits Times
Date : 30 April 2012
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