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Friday, May 13, 2022

Minimum wage: Employers with less than 5 workers exempted till year-end


Employers with less than five workers have been exempted from the implementation of the Minimum Wage Order 2022 until the end of the year, Deputy Human Resources Minister Awang Hashim announced.

However, he said, employers involved in professional fields such as lawyers and doctors would still have to follow the stipulated minimum salary of RM1,500 for each employee, regardless of how many workers they have.

“All employers in any economic sector are not exempted from the implementation of the order that came into effect on May 1. Other employers (with less than five workers), have been given a deferment until Dec 31.

"This relaxation is to give them some room to make appropriate preparations regarding the payment of salaries that has been finalised by the government," Awang told reporters after the Social Security Organisation's (Socso) Hari Raya Aidilfitri event in Alor Setar yesterday.

On April 27, the government gazetted the implementation of the minimum wage of RM1,500, which came into effect on May 1, for employers with five or more workers as well as employers who carry out a professional activity classified under the Malaysia Standard Classification of Occupations (Masco) 2020.

Meanwhile, at the ceremony, Awang presented benefits to 13 insured persons, totalling more than RM26,100.

"Kedah Socso has presented benefits to insured persons totalling over RM29 million in 2021 compared to more than RM41 million in 2020. There was a decrease of 28.85 percent in total payments made, as in 2020, when the Covid-19 situation was still bad.

"Besides that, Kedah Socso also made payments to insured persons infected with Covid-19 at the workplace from January to April 2022 amounting to more than RM7 million, with 4,633 cases," he said.

In the meantime, Awang also called on self-employed individuals, such as fisherfolk, gardeners and rubber tappers, to also contribute to Socso to ensure they were protected in the event of an accident or disaster while working.

- Bernama

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