KSM studying whether guidelines are needed on paying interns allowances in private sector

While internships are not compulsory, HR Minister Sivakumar agreed with the Prime Minister that employers should consider paying "reasonable allowances" that cover interns' daily expenses.

Malaysia's Employment Act 1955 does not cover specific provisions regarding the payment of allowances for interns (or trainees) in the private sector, as this group is not categorised as 'employees' under the Act, Human Resources Minister V. Sivakumar has clarified.

As such, interns in the private sector are currently paid allowances according to the policies set by individual companies and depending on the company's financial capabilities, he noted. 

However, the Minister shared, the Ministry of Human Resources (Kementerian Sumber Manusia, or KSM) will look into this and "make a comprehensive judgment and take appropriate action" while considering the views and needs of the relevant parties, i.e., interns and their employers.

"The Government has yet to establish a policy or guidelines on industrial training allowances for private companies. This is a complex issue that requires in-depth study and consultation with various stakeholders, especially the Ministry of Higher Education. The Government is committed to ensuring that all trainees, regardless of whether they are in the public or private sector, receive fair and equitable treatment.

"If necessary, the Government will establish clear and detailed guidelines on the payment of industrial/practical training allowances in the private sector."

In sharing the above, Minister Sivakumar expressed his agreement with Prime Minister Anwar Ibrahim, who had previously urged employers to pay interns "reasonable allowances" that can cover their daily expenses such as food and transport. However, as cited by Bernama, he said the government would not be setting any fixed payment rates, given that internships are not compulsory.

Thank you for reading our story! Please leave us a comment if you enjoy our content — take our 2023 Readers' Survey here.

Image / Shutterstock