Minimum wage won’t apply to all sectors – for now, says Saravanan

PUTRAJAYA: Various sectors will be temporarily exempted from implementing the RM1,500 minimum wage policy, says Datuk Seri M. Saravanan.

The Human Resources Minister said the initiative, which begins on May 1, would see an exemption for informal sectors and those experiencing financial losses from the Covid-19 pandemic, following requests from both the Cabinet and Prime Minister.

“Among those involved would be farmers, hotels and tourism industries as well as companies with fewer than five employees.

“At the same time, we also commend larger companies who have agreed to implement this (minimum wage),” he told reporters after launching the Human Resource Development Corporation (HRD CORP) micro-credential initiative.

Saravanan also said that it was no longer an employer’s market.

“Despite the current situation, the people now have an option to work for minimum wage or gig economy jobs,” he said.

He added that employers should strive to attract potential employees through attractive packages such as higher wages.

He also said Indonesian maids will be paid at least the minimum wage of RM1,500.

The Human Resources Minister clarified that he initially did not agree with paying Indonesian domestic helpers RM1,500 monthly as the minimum wage was RM1,200 when discussions began a year ago.

“However, with our revised minimum wage, this is no longer an issue, and I hope there will be no more confusion on this matter,” he told reporters after launching the Human Resource Development Corporation (HRD CORP) micro-credential initiative here Wednesday (April 13).