Leaked agreement: Indonesian domestic workers’ base pay at RM1,500

 

Strict rules for the protection of Indonesian domestic workers, including a minimum wage of RM1,500, will be imposed on Malaysian employers, according to the April 1 memorandum of understanding (MOU) between Malaysia and Indonesia.

Human Resource Minister M Saravanan had previously issued a statement with a summary of the MOU’s contents but Malaysiakini today sighted the full document as shared by industry sources in Jakarta, Indonesia.

According to the MOU, the wages are to be paid directly into the workers’ bank accounts no later than the seventh of each month, with a one-month bonus upon contract completion and salary increment if the contract is renewed after two years.

If wages are not paid on time, an additional 5 percent of the total unpaid wages are added as compensation and the continued failure to pay wages for two consecutive months will give the domestic worker the right to terminate the contract of employment.

Termination of the employment contract will also not relieve the employer of their contractual duty to pay the outstanding wages and compensation would be imposed by the court, the document read.

The domestic worker's minimum salary requirement differs from Malaysia’s stand on the matter last year.

In December 2021, Saravanan said he had informed his Indonesian counterparts that Malaysia does not agree with setting an RM1,500 minimum wage for domestic workers.

“However, I have agreed that the salary starts from RM1,200… meaning that if an employer is willing to pay RM1,500, the government has no objection,” he was reported as saying.

However, it is in line with the latest minimum wage of RM1,500 for all workers starting May, as announced by Prime Minister Ismail Sabri Yaacob in March.

Ten hours’ rest a day, including seven consecutive hours

Although the MOU states the minimum wage, the final contracted salary of each worker will be concluded through negotiations between Malaysian private employment agencies (APS) representing employers and their Indonesian counterparts sending workers, the document read.

This MOU stipulates that each APS could have a partnership agreement with no more than 10 Indonesian registered recruitment agencies.

Employers must also facilitate the opening of a bank account for their domestic workers and issue salary slips, it stated.

All contracts will be submitted to the Indonesian Embassy by their respective employment agency for endorsement.

Besides stringent wage requirements, the MOU also stipulates work conditions and leave days entitled to Indonesian domestic workers.

This includes medical leave, annual leave, days off and hours of work per day.

Workers must be given a minimum of 10 hours of rest per day, which include seven uninterrupted hours. If they have to work on rest days, they have to be compensated.

Caregivers don’t have to cook or clean

According to the MOU, Indonesian domestic workers will also be placed into three categories - housekeeper and family cook, child caregiver or elderly person caregiver, and one person cannot be expected to cover all three categories.

As such, a child or elderly caregiver will not cook or clean and will only care for the wellbeing and safety of children aged below five or an elderly person.

The job scope of a housekeeper and family cook is strictly cleaning, ironing and cooking which does not include care of family pets, car washing or gardening.

A typical household for one domestic worker is not to exceed six family members above the age of five years old and without persons with special needs, the document read.

The MOU, which has not been made public, was signed amid calls by Malaysian employers to allow the hiring of foreign domestic workers.

The practice was suspended when borders were closed in 2020, to curb the spread of the Covid-19 pandemic.

While the MOU may come as a relief for potential Malaysian employers needing help at home, not all who intend to hire an Indonesian domestic worker will be allowed to do so.

The MOU states that Indonesian missions in Malaysia will determine the minimum net income that will qualify potential employers and coordinate with Malaysian authorities to verify supporting documents submitted.

The Indonesian government is also responsible to ensure that its domestic workers are aged between 21 years and 45 years, possess sufficient knowledge of Malaysian laws and can communicate in Bahasa Malaysia.

Hiring costs capped at RM15,000 per worker

The MOU also stipulates that hiring costs must not exceed RM15,000 per worker, in total.

This includes payments for the Employment Injury Scheme provided under the Employee’s Social Security Act 1969, health insurance, medical screening prior to departure, medical examination upon entry by Fomema Sdn Bhd and a medical examination carried out once a year.

Items for payments to be made in Indonesia include social security, health certificate, medical check-up, psychology test, training, certificate of competence, airfare and accommodation.

All recruitment, placement and employment must go through a One Channel System, as earlier reported by Malaysiakini.

The portal for submitting the documents has yet to be announced, but Malaysiakini’s checks found the company said to be running the portal is foreign-owned.

This raises concerns over the protection of personal data submitted by employers.

Checks also found the company, which industry sources said will be running the portal, is listed in the Companies Commission Malaysia as one which runs “personal development/motivational” courses.

It is also linked to a private recruitment agency for foreign workers, raising questions over conflict of interest.

The signing of the MOU is also targeted to reopen the labour market between both countries, as Indonesia had imposed it as a condition to allow the recruitment of workers in other sectors.

- Mkini