Slashing benefits after RM1,500 minimum wage is betrayal - MTUC

 

The Malaysian Trades Union Congress (MTUC) has slammed employers who allegedly slashed staff allowance and other benefits following the new minimum wage of RM1,500 which took effect this month.

In a statement today, the umbrella union body said such an act is a betrayal of the effort taken by the government in taking care of the bottom 40 percent of income earners (B40).

"We have received complaints from employees that companies have deducted allowances and other benefits - including slashing canteen food subsidy and transportation - to reduce cost due to an increase in minimum wage.

"MTUC would like to remind these companies that any changes made in the company, such as deducting the existing staff benefits… due to minimum wage is a betrayal of the government's effort to increase the income of the B40 group.

"We urge employees who are not paid the new minimum wage or getting fewer benefits to file a report at the MTUC headquarters or nearest Department of Labour to enable action being taken against the companies," said MTUC.

The group called on the Labour Department to act upon receiving employee complaints and also be proactive in inspecting companies to ensure the new minimum wage is being adhered to.

"A lack of staff in the department for inspection is not an excuse for minimum wages not being paid to the workers," it said.

On April 27, the government gazetted the implementation of the minimum wage of RM1,500, which came into effect on May 1.

The new minimum wage is for employers with five or more workers and who carry out a professional activity classified under the Malaysia Standard Classification of Occupations (Masco) 2020.

Employers with fewer than five workers are exempted from the implementation of the Minimum Wage Order 2022 until the end of the year.

Last month, the Federation of Malaysian Manufacturers (FMM) raised concerns that the minimum wage’s jump to RM1,500 could result in a steep cost increase and reverse the otherwise optimistic business recovery for 2022. - Mkini