Kula: Minimum wage list was a Cabinet decision

PETALING JAYA: The decision to raise the minimum wage to RM1,200 was a Cabinet decision made in consultation with the National Wages Consultative Council (NWCC), says Human Resources Minister M. Kulasegaran (Pic).

He said increase was entirely within the National Wages Consultative Council Act 2011 which stated that the minimum wage must be reviewed at least once every two years.

“We are keeping to the roadmap of the government to reach a RM1,500 minimum wage, as promised within the first term of Pakatan Harapan as the government, and this is one way to do it.

“We realise the economy is not doing well and this is why we are not implementing it nationwide

this time. We are only implementing it in 57 chosen major towns and cities, ” said Kulasegaran.

He said these places were chosen after consultation with certain parties and if there were those who disagree, they could always write to him.

He was replying to criticisms from the Malaysian Employers’ Federation and Federation of Malaysian Manufacturers which said that the ministry had been hasty in implementing the minimum wage of RM1,200 in 57 major towns and cities nationwide.

The two federations also questioned the choice of the 57 places where the minimum wage is to be raised by Jan 1,2020.

Malaysia introduced its minimum wage policy in 2012 after the National Wages Consultative Council Act 2011 was passed by Parliament.

Under this law, the NWCC was established to set the framework for the implementation of the minimum wage in Malaysia.

Under NWCC’s Minimum Wages Order 2012, which was enforced on Jan 1,2013, the minimum wage was fixed at RM900 a month for the peninsula and RM800 for Sabah, Sarawak and Labuan.

On July 1,2016, as per the Minimum Wages Order 2016, the minimum wage was raised to RM1,000 a month in the peninsula, and RM920 in Sabah, Sarawak and Labuan.

In the latest exercise, the minimum wage will be raised to RM1,200 in 57 towns and major cities, an increase that was first announced in Budget 2020 in October.

The Human Resources Ministry said the minimum wage would remain at RM1,100 a month in areas that were not considered part of these cities and towns.