‘New minimum wage unfair to local workers and employers’


PETALNG JAYA: The newly gazetted minimum wage of RM1,200, which will cover 56 cities and municipal councils from Feb 1, will be unfair to local workers and employers, says the Association of Employment Agencies Malaysia.

Employers were already providing accommodation, transportation, annual immigration levy, insurance and food to foreign workers, which would push the cost of products and services more, it said in a statement.

The gazette was released by the Human Resources Ministry on Jan 10 under the Minimum Wages Order 2020.

It states that the minimum wage rate payable to an employee who works within the 16 city councils and 40 municipal councils will be RM5.77 an hour or RM1,200 monthly.

An earlier announcement by the Human Resources Ministry had prompted a backlash from manufacturers and bosses, many of whom questioned the timing as well as the criteria for the list of cities and towns chosen.

The association also questioned whether foreign workers working in the selected cities would be earning more than their local counterparts.

Malaysian Employers Federation executive director Samsudin Baradan had lamented that the cost of doing business would likely rise with employers having to bear the increase.

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