Forking over more money for foreigners?

Companies employing a large number of foreign workers should discuss the terms included in their RM900 (S$400) minimum wage before recruitment, to avoid misunderstandings and unnecessary financial burdens.

MCA president, Datuk Seri Dr Chua Soi Lek, said many employers are having to pay the mandatory minimum wage to foreigners in addition to their housing and transport allowances that already exist.

This poses a large financial burden to local employers and has upset some Malaysian workers, who claim foreigners are making more money because of it, The Star reported.

Many employers did not realise the implications of minimum wage for foreigners until after implementation, he said, and some felt "trapped" due to existing contracts.

Chua suggested the transport and housing costs, which could add up to around RM300 (S$119), could be included in the minimum wage for foreigners under their new contracts, but both the employer and employee must discuss any changes to iron out any misunderstandings.

At the end of January, more than 100 members of Malaysian business associations gathered to protest against minimum wage for foreigners outside the Human Resources Ministry.

The Minimum Wages Implementation Steering Committee said they were not against the implantation of a minimum wage, but believe it should only be for Malaysians and not foreign workers, in order to ease their finances.

They outlined their demands - for wages of foreign workers to be kept at the current level already decided by the embassies and for the Ministry to re-examine the minimum wage requirements to better reflect the different standards of living in different areas.

Human Resources Minister, Datuk Seri Dr S. Subramaniam, said in a press conference last week the Ministry is looking into requests from employer groups for the cost of accommodation and transport to be transferred to the foreign workers.

"We have not made a decision yet. We are still studying the possibility," he said.