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Malaysia’s new minimum wage for the private sector likely out in August

Malaysia’s minister of human resources M. Kulasegaran said in a press conference that a meeting will be held on 13 June for the National Wage Consultative Council (MPGN) to review the Minimum Wages Order 2016, as reported by Bernama.

"After the meeting, the ministry will prepare a Cabinet Memorandum for the government to make a decision," he said in press conference after the Human Resources Ministry's monthly assembly.

Kulasegaran noted that the meeting will note on the recommendations on minimum wage to fulfill Pakatan Harapan’s (PH) manifesto. PH pledged to equalise and increase monthly minimum wages to RM1,500 by the first term and reviewable every two years.

According to a past report by Human Resources, the last time the minimum wage rate was reviewed was in 2016 when the minimum wages were set according to region – RM1,000 per month or RM4.81 per hour for Peninsular Malaysia, and RM920 per month or RM4.42 per hour for Sabah, Sarawak and Labuan. [full slab here]

National Human Resource Centre also states that all local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages.

Additionally, the National Wages Consultative council Council (NWCC) have also presented an analysis on the enforcement of minimum wages policy in Malaysia in 2017. It clarified that up to 31 August 2017, a total of 150,525 labour inspections were done & out of this number, 148,072 employers or (98%) employers have paid the minimum wages as per the Order.

ALSO READ: Malaysia salary trends: HR, accounting, BFS and tech sectors

“You see, we have put the upper limit at RM1,500 In our manifesto. We will definitely achieve that figure, but that quantum of increase for now, it is being discussed by all parties,” Kulasegaran said, as cited in Malay Mail.

In the same article, he emphasised that “We must have a situation of encompassing everybody. So I, as minister, will have discussions with as many people as possible, in trying to achieve the best result.”

On another note, Kulasegaran states that the government will consider the proposal for 1.2 million housewives in the country to be give Social Security Organisation (SOCSO) cover. It will be able provide free medical treatment, facility for physical or vocational rehabilitation, and financial assistance to employees.

Lead Photo / iStock

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