MTUC study reveals minimum wage loophole


  • Nation
  • Saturday, 14 Dec 2013

KUALA LUMPUR: A study by the Malaysian Trades Union Congress (MTUC) has revealed that many employers are still shortchanging workers by lumping all overtime and allowances into the basic salary to make up the statutory RM900 minimum wage.

Its vice-president A. Bala­subra­maniam said the study also showed that many companies, especially the smaller ones, were paying less than RM900 per month inclusive of all allowances.

Although the minimum wage regulations will come into effect on Jan 1, it was reported that a few hundred companies were given extensions due to cash flow and other problems.

Balasubramaniam said the Human Resource Ministry should set up tripartite committees comprising government officers, employers and worker representatives within all the 72 manpower offices nationwide to keep tabs on the implementation.

These committees, he said, could be effective as they could deal with the situation at the local level and solve any problem that might arise.

The committees could also double up as one-stop centres to solve grievances of both local and migrant workers. — Bernama


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