Report on Minimum Wage Review Will Be Released by Early 2022
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Deputy Human Resources Minister Datuk Awang Hashim said that the report on the minimum wage review would be completed by the end of 2021. The ministry would present its study via the National Wages Consultative Council by early 2022.
In reply to a supplementary by Syed Saddiq in today's Dewan Rakyat session, he said that if there are any changes, they will have to be brought to Parliament.
Minimum wage review
According to Awang, the report was in line with the wage review performed once every two years. The study considers issues such as Malaysia's gross domestic product (GDP), economic stability, and the cost and standard of living.
The Human Resources Ministry last carried out the review in 2020, where the minimum wage was increased to RM1,200 from the previous RM1,100.
The latest minimum wage came into force in February 2020 in 57 cities and towns across the country. However, the minimum wage stayed at RM1,100 per month in areas not included in the list.
Should food delivery service providers contribute to Socso?
On another matter, Syed Saddiq suggested that companies such as Foodpanda, AirAsia and GrabFood's food delivery service should make contributions to ensure gig workers' social protection.
He said that employers or companies around the world subsidise social protection instead of the government. He added that if the government subsidises, it means that they are subsidising the big businesses.
"The government should not carry this responsibility," he said.
Awang replied that the government decided to create the Self-employed Social Security Scheme via the Social Security Organisation (SOCSO) in 2020 in response to the pandemic to protect the self-employed and gig workers.
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The minimum wage recently increased from RM1,100 to RM1,200 in 57 cities and towns.
The deputy minister noted that the Covid-19 pandemic had affected all economic sectors. The subsidy was a form of assistance to help companies recover while also providing gig workers social security.
He said that when the businesses recover, it will be the catalyst for the economy, and the government can collect taxes which will help the people.
Under the self-employed plan, the government contributes up to 70% to Socso, while the gig workers or their platforms service providers contribute the remaining 30%. The government contributes amounts that range from RM163 to RM232.80 per annum for protection under Socso.
As of now, there are currently an estimated four million gig workers in Malaysia.
Source: The Star