Some may be exempted from minimum wage ruling

Positive ripple effect: The move to increase the minimum wage to RM1,500 is expected to positively contribute to the country’s economy by increasing the purchasing power of employees, says Saravanan.

PETALING JAYA: Some businesses may be allowed to postpone or be exempted from implementing the RM1,500 minimum wage which is expected to come into effect on May 1, says Deputy Human Resources Minister Datuk Awang Hashim.

The ministry, he said, would deliberate on the postponement of the implementation of the new minimum wage for some business sectors, especially micro, small and medium enterprises.

Some employers, he said, would be given an exemption but this was still being discussed at the ministry level.

“We will announce it soon. But most importantly, on May 1, we have taken a stand for the move to benefit the lower income group in the country,” Awang was quoted as saying by Bernama after launching a TVET programme in Pendang, Kedah, yesterday.

On Saturday, Prime Minister Datuk Seri Ismail Sabri Yaakob announced during the Umno general assembly that the national minimum wage would be revised to RM1,500 beginning May 1.

He said discussions between the relevant ministries would also be held to look into delaying the implementation of the policy for small and micro businesses with low income or revenue.

Yesterday, Human Resources Minister Datuk Seri M. Saravanan said detailed mechanism and implementation of the new monthly minimum wage would be announced soon.

Saravanan said the Prime Minister’s announcement was in line with the government’s wish to increase the income and well-being of employees.

“This move is expected to positively contribute to the country’s economy by increasing the purchasing power of employees,” he said.

The government decided to increase the minimum wage rate during its Cabinet meeting on March 11.

The current minimum wage rate of RM1,200 was gazetted in 2020 and implemented in 57 towns and councils since Feb 1, 2020. It was increased from the previous rate of RM1,100.

Saravanan previously said low wages might push more people towards the gig economy.

The government, he added, was studying the possibility of increasing the minimum wage to attract potential employees who might otherwise be attracted to the gig economy or those that required them to work from home.

“If not, we will face a challenge in convincing them to take up the opportunities that have been rolled out by agencies under the Human Resources Ministry,” he added.