EPF a welcome move: Abu Backer (right) working at Hameediyah Restaurant in George Town. — LIM BENG TATT/The Star
GEORGE TOWN: Following the minimum wage increase from RM1,500 to RM1,700, a restaurant operator is concerned that it will now be burdened with the mandatory EPF contribution of 2% for foreign workers.
Hameediyah Restaurant director Muhammad Riyaaz Syed Ibrahim said the restaurant has to bear the additional costs as it employs many foreign workers.
“On Feb 1, the minimum wage increased from RM1,500 to RM1,700, which has significantly increased our costs. And now, we will have to fork out for the EPF contribution, which may affect our business,” he said when met at the restaurant here recently.
Muhammad Riyaaz said the restaurant has seven outlets nationwide, with about 50 workers at each.
“It costs us about RM5,000 to bring them into the country and renewal of a permit costs about RM2,500 yearly.
“We have been taking good care of our workers and are also looking into their welfare.
“Most of our workers earn between RM2,000 and RM2,500 monthly, including overtime.
“Any additional costs would affect our businesses, especially with rising costs of raw ingredients in the market,” Muhammad Riyaaz said, adding that the management also supports their food and lodging.
He said while many people assumed that the restaurant enjoyed brisk business, this was not the case.
“Yes, our popular outlets may be doing well, but others are experiencing slow business.
“We have days where there are not many customers, but our operations, including payment of salaries and other benefits, have to go on as usual,” he explained.
Recently, Prime Minister Datuk Seri Anwar Ibrahim announced that the mandatory EPF contribution for foreign workers will be capped at 2% for employees and employers.
Although there were proposals for a 12% contribution for foreign workers, the Cabinet decided to go with a lower rate.
Meanwhile, foreign workers at the restaurant felt that the 2% contribution would be helpful.
Restaurant supervisor Abu Backer Sithik, 43, from Tamil Nadu, India, said he is thankful that his employer takes excellent care of him and other foreign workers.
“The management provides meals and air-conditioned accommodation, on top of covering the costs of our work permits and healthcare at clinics.
“So, I will not feel a pinch if RM34 is deducted from my monthly salary of RM1,700 because the EPF contribution will come in handy one day.
“This can help me support my family, including a 17-year-old son and 13-year-old daughter back home,” said Abu Backer, who has been in the country for 12 years.
His co-worker Naresh Bahadur Kadayat, 34, from Nepal, who has been here for nine years, said his salary comes up to RM2,000 monthly, including overtime.
“Each month, I send about RM1,300 back for my family’s expenses as my wife is unemployed and looks after two children, aged two and nine.
“You could accumulate the EPF contribution and set it aside for emergencies and additional savings,” he said.
