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Dr Muzaffar Syah Mallow
KUCHING (May 4): The government should strictly monitor the enforcement of the new minimum wages rates in the country.
In expressing this view, Faculty of Syariah & Laws, Universiti Sains Islam Malaysia (USIM) Associate Professor Dr Muzaffar Syah Mallow said there have been complaints by some workers that their employer has not made the necessary adjustment to the new minimum wages rates and that their employer has taken away some of their employment benefits in order to cover the new minimum wage increase.
“All these complaints need to be addressed seriously and investigated immediately in order to avoid confusion and add additional problems to the workers who are currently facing financial burden and the increase in the cost of living,” he said in a statement.
He added in 2022, the previous government had decided to increase the minimum wages rates in the country.
“Beginning May 1, 2022, the minimum wages in Malaysia for employees employed by an employer who employs five employees or more and those employed by a Malaysia Standard Classification of Occupations (Masco) employer regardless of the number of employees employed, will increase to RM1,500 per month from RM1,200 (for places of employment within a city council or municipal council area) and RM1,100 (for places of employment within a city council or municipal council area).
“An employee who is employed by an employer who employs less than five employees (other than those employed by a Masco employer) will continue to earn a minimum monthly wage of RM1,200 (for places of employment within a city council or municipal council area) and RM1,100 (for places of employment within a city council or municipal council area) until December 31, 2022,” he said.
However, he said the current government has decided that the new minimum wages order for this select group will take effect on July 1, 2023. After that, their minimum monthly wage will also be increased to RM1,500 and thereby align the minimum wages for employees employed in Malaysia.
“The widely anticipated Minimum Wages Order 2022 (“the Order”) was gazetted on April 27, 2022. The Order was made pursuant to Section 23 of the National Wages Consultative Council Act 2011 [Act 732], increases the minimum wages nationwide to RM1,500 starting May 1,2022,” he said.
However, he added, there is a temporary exemption from the increase for employers with less than five employees, and for locals and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages and also including domestic servants (maids, cooks, guards, gardeners and personal drivers) and apprentices who undergo training for a period not less than two years will not be covered by this minimum wages order.
“According to Section 2 of National Wages Consultative Council Act 2011 [Act 732] ‘minimum wages’ means the basic wages to be or as determined under Section 23 of Act 732.
“Minimum wages is basic wages, excluding any allowances or other payments,” he pointed out.
Therefore, he said it is very important for all concerned employers to take the new minimum wages rates order seriously and abide by the decision on such matter.
“Failure for them to undertake and implement it will be considered as committing an offence and can be penalised by the existing law in the country.
“Any worker who feels that their employer has ignored their basic right to receive the minimum wages should immediately seek help and lodge a complaint to the Department of Labour or National Wages Consultative Council Secretariat at the Ministry of Human Resources (MOHR),” he said.
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