Certain Sectors to Be Given Flexibility on Minimum Wage
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Human Resources Minister Datuk Seri M Saravanan said that specific employment sectors, such as the informal sector, will be given flexibility when the RM1,5000 minimum wage rate is implemented on May 1.
According to him, among the sectors are:
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Those earning income via working odd jobs,
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Companies that employ fewer than five workers, and
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Companies that face huge losses, such as the hospitality sector.
The minister said by highlighting similar flexibility given when the government implemented the minimum wage order in 2012, it would also provide one year of flexibility for any party in need, and the flexibility could be extended according to the minister's purview.
He said that odd-job workers are still making RM500 to RM600 wage, and if he forces companies to pay them RM1,500, they will soon be without a job.
On March 19, Prime Minister Datuk Seri Ismail Yaakob announced that the country would implement the RM 1,500 minimum wage beginning May 1 countrywide.
Saravanan explained that the minimum wage rate's implementation is according to the National Wage Consultative Council Act 2011 (Act 732), which will be reevaluated once every two years.
"If not now, when? The Act stipulates that it needs to be reviewed once every two years. If I don't do it, people will criticise me that I violate the Act," he said.
Tourism sector temporarily exempted from the RM1,500 minimum wage order
Saravanan also announced that the tourism industry is one of the sectors that will be temporarily exempted from the RM1,500 minimum wage order.
The minister said the new policy that was planned to start on May 1 would exempt informal sectors and those that suffered losses because of the economic impact of the Covid-19 pandemic.
Due to the pandemic, Malaysia's tourism industry and hotels were heavily impacted by the closed borders and travel restrictions.
"Among those exempted are farmers, hotels, tourism industry players, and companies with fewer than five employees," he said to reporters after announcing the Human Resource Development Corporation (HRD Corp) micro-credentials initiative.
Saravanan added that the exemption was made after requests from both the Cabinet and Prime Minister Datuk Seri Ismail Yaakob.
Earlier, the International Trade Union Network Council Malaysia (UNI-MLC) called for the RM1,500 minimum wage to be implemented by all sectors and also include domestic workers.
Union president Shafie BP Mammal said the RM300 addition from the previous minimum wage of RM1,200 would provide some relief to those who are still struggling to get by, even though it is still considerably low.