Not compulsory for private sector to pay Cola

THERE are no moves by the Government to make it compulsory for the private sector to provide a fixed cost of living allowance (Cola) for employees.

“There is no proposal at the present moment to implement fixed cost of living allowance for local workers in the private sector,” Deputy Human Resource Minister Datuk Seri Ismail Abdul Muttalib said when replying to a question from Normala Abdul Samad (BN- Pasir Gudang).

He said employers were given the discretion to provide allowances under their terms of employment.

“The Government does not have any power to force employers to provide Cola or similar allowances to employees,” he added.

Although discretionary, he noted that there were employers who provided allowances for food, rent, travel and medical and telephone bills.

“For example, Samsung even provides an allowance for single mothers,” he added.

Also taken into consideration, he said, was the implementation of the minimum wage of RM900 for workers in Peninsular Malaysia and RM800 for those is Sabah, Sarawak and Labuan.

He said the Government encouraged employers to hold discussions with their employees to see how best to safeguard their welfare.

He added that the Government was aware of the issue of cost of living and had taken steps under Budget 2015 to address it with several measure to assist those in the lower income group.