Employers with fewer than five employees on their payroll now have until July 1 next year to start paying the new minimum wage of RM1,500, according to Human Resources Minister V Sivakumar.
This is the second extension granted on the new minimum wage gazetted in April, after an initial extension from May 1 to Jan 1.
Sivakumar (above) in a statement said the decision was made after taking into account stakeholders' views on various economic and financial challenges next year.
"The additional extension of another six months is hoped to provide an opportunity for companies with fewer than five employees to balance their finances and in a way help to restore their economy," he said.
At the same time, Sivakumar stressed that all employers already paying the new minimum wage since May 1 must continue to do so next year.
"Therefore, employers not involved with this extended delay (in enforcement) must continue to pay the minimum wage of RM1,500.
"It is the ministry's hope that this extended delay will be welcomed by all parties," he said.
The new minimum wage - applicable to both locals and migrant workers - was an increase from the previous RM1,200.
Earlier this year, the previous administration in announcing the delayed enforcement had cited the impact of the Covid-19 pandemic on small businesses.
'Govt should subsidise employers'
In an immediate reaction, the Malaysian Trades Union Congress (MTUC) expressed shock and regret over the second extension as it was never discussed with the body representing the rights of workers.
MTUC secretary-general Kamarul Bahrin Mansor said the act was a sign of disrespect by the government towards workers in deciding on a matter affecting their rights.
"MTUC is deeply disappointed by this decision and we see this as discrimination against workers in the B40 category," he said in a statement today.
Rather than further delaying the payment of minimum wage by micro-businesses, Kamarul said the government should instead provide troubled employers with a wage subsidy for their workers.
"So in the end the workers will benefit if the government provides a wage subsidy to employers facing difficulties in paying minimum wage," he said.
Kamarul also called for an overall review of procedures involved in the enforcement of policies intended to protect workers' rights, through the National Labour Action Council.
Meanwhile, PSM deputy chairperson S Arutchelvan described the delay as a massive betrayal, calling out Prime Minister Anwar Ibrahim for appearing to champion low-income earners but yet failing to deliver on a major promise that would assist the poorest among workers.
PM’s promise falling flat
"This move to defer minimum wage to the poorest of the workers is totally unacceptable.
"In last May, this group of workers were promised minimum wage in January 2023 and employers were given enough leeway so that they can comply," he said.
"Now Anwar's promise of helping B40 falls flat.
"Ministers taking a 20 percent cut (in salaries) seems to be just a stunt because a minister or prime minister earning RM15,000 to RM20,000 salary and taking a 20 percent pay cut is not a big deal when compared to denying workers to get an RM1,500 salary," he said.
Echoing MTUC, Arutchelvan said the government should subsidise the micro businesses in paying their workers minimum wage.
Separately, Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman, in thanking the ministry, revealed there are an estimated 560,000 employers affected by the new minimum wage enforcement deadline.
"The deferment of RM 1,500 minimum wage to July 2023 for micro-enterprises will allow them some relief to focus on building their business and cash flow to keep their venture going.
"MEF is optimistic that once they are on a stable footing, most micro-enterprise employers will honour the RM 1,500 minimum wage," said Syed Hussain.
"Having more businesses thriving will create more employment.
"At these tough times, we need full employment to grow the business and national economy," he stated. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.