Engagement session with employers’ bodies on RM1,500 minimum salary next month

LABUAN: The Human Resources Ministry (MoHR) will hold an engagement session with representatives of employers’ bodies and business chambers on the new monthly minimum wage of RM1,500 effective May 1.

Its deputy minister, Datuk Awang Hashim (pic), said the engagement session would be held sometime next month before the implementation of the new minimum wage takes place.

"As the new monthly minimum wage will be implemented on Labour Day, May 1, we still have time to hold engagement sessions with the representatives of employers’ bodies.

"We will gather the Malaysian Employers Federation (MEF), Malaysian Trades Union Congress (MTUC), Congress of Union of Employees in the Public and Civil Services (Cuepacs) and business chambers for the session,” he said at a press conference after making an official visit to Labuan’s fully integrated logistic hub for oil and gas industry at Asian Supply Base (ASB) here on Friday (March 25).

Awang was optimistic the implementation of the new monthly minimum wage of RM1,500 could be implemented successfully.

"We have gone through unprecedented situation like in the Covid-19 pandemic, where the government introduced a number of stimulus package and financial assistance schemes (skim prihatin) to assist the affected employer and employee.

"The government will be responsible for the new minimum wage structure implementation, and will not allow companies to cease business operation due its implementation, but we must be rationale with the situation of low-income earner having to face the high cost of living,” he said.

Awang said the new minimum wage is applied to all sectors including employees of legal and architect firms and private clinics.

"These sectors are professional with high revenue and return of investment (RoI), therefore, it is inappropriately, they should apply for an exemption from the new minimum wage implementation,” Awang said.

He also said the ministry would carry out segmentation exercises on sectors like tourism, agriculture, services and plantation among others in line with the new minimum wage implementation.

Prime Minister Datuk Seri Ismail Sabri Yaakob, on March 19, said the government has increased the minimum wage to RM1,500 per month and it would be implemented nationwide for certain companies effective May 1.

He said the new minimum wage would initially apply to big companies and government-linked companies.

Ismail Sabri announced this when winding up the debate at the Umno General Assembly 2021 here on March 19. - Bernama