Some employers still not complying with minimum wage order, says MTUC

Some employers still not complying with minimum wage order, says MTUC

IPOH: There are still unscrupulous employers who do not comply with the RM1,500 minimum wage order that came into effect two years ago, says Malaysian Trades Union Congress (MTUC) president Mohd Effendy Abdul Ghani.

He said MTUC urged the government to be more aggressive in identifying employers who persistently evade compliance or seek ways to reduce wage costs.

“As stated by Economy Minister Rafizi Ramli while presenting the White Paper on Progressive Wage Policy in Parliament last year, there are still 10% of formal workers receiving wages below the minimum rate of RM1,500 per month,” he told a press conference here on Tuesday (April 30) night after the MTUC dinner and 2024 Labour Day celebration.

The 2022 Minimum Wage Order took effect on May 1, 2022, setting a minimum wage of RM1,500 per month for all sectors, irrespective of location, applying to employers with five or more employees.

However, under previous regulations, enforcement of the order for employers with fewer than five workers was deferred from Jan 1 last year to July 1 the same year.

Mohd Effendy suggested that the government announce a new minimum wage rate after a thorough two-year review of the order for the benefit of Malaysian workers, in line with the rising cost of living.

“However, the most crucial aspect is the enforcement of compliance.

“Even if the minimum wage is raised to RM1,800, if enforcement remains weak, we will continue to face the same issues because of some unscrupulous employers,” he added.

The implementation of minimum wage can enhance local workers’ income, thereby boosting the country’s economy towards achieving high-income nation status, he stressed.

He noted that a balanced approach between employers and employees would also reduce the country’s reliance on foreign workers and ensure non-discrimination in the workplace based on race or gender. – Bernama