"Happy Labour Day Malaysia!"
"Selamat Hari Buruh!"
"Happy Employee Day!"
Last night, 30 April 2012, Malaysia Prime Minister, Datuk Seri Najib Tun Razak announces "minimum wage for private sector" at a special gathering with thousands of private sector employees at the Putrajaya International Convention Centre. It is a gift to all Malaysia private sector employees from the government and to make sure Malaysia don't depend on foreign workers in the future. Many people expect the minimum wage of between RM1,200 and RM1,500 but Najib said If it is set beyond the RM900 (basic salary) level, it would affect the economy, labour market and the entry foreign workers. the minimum wage would be reviewed from time to time in tandem with the country's affordability, productivity and competitiveness.
The minimum monthly wage for private sector employees:
- In the Peninsular Malaysia, the minimum wage has been set at RM900 or RM4.33 per hour.
- In Sarawak, Sabah and Labuan, the minimum wage has been set at RM800 or RM3.85 per hour.
Additional information for employers:
- The rates will take effect six months from the date the Minimum Wage Order (Perintah Gaji Minimum) is gazetted.
- The effective date for small-time employers or micro enterprises is extended by another six months in order to give them the space and opportunity to make preparation so that their businesses would not be affected, he said.
- The 12-month grace period did not cover professional firms such as dental and medical clinics, legal, architecture and consultants.
- Even if they had five employees or less, they were required to implement the minimum wage within six months after the Order was gazetted.
- The grace period (6 months) was sufficient for employers to re-structure salaries and their business operations.
- The Government is providing a flexible implementation mechanism so those who are really unable to implement the minimum wage can appeal for an extension. We have also prepared a mechanism where some allowances or fixed cash payments are allowed to be absorbed in the calculation for minimum wage. This is to ensure that its implementation does not burden the employers while the employees will not lose,
- The different rate of minimum wage between the Peninsular and Sarawak, Sabah and Labuan was due the variation in wage structures and the noticeable cost of living in those places.
Do you think all employers in Malaysia will follow these new minimum wage? I had seen factory in Sabah and Sarawak paid their labour around RM350 per month. The new rules will mean the employers need to pay double to their employee. Sarawak, Labuan and Sabah minimum wage also a little bit lower then Peninsular because of "low cost of living" in that places? Owh.., really? Wasn't the price of rice are more expensive in that place compare to Peninsular Malaysia? last time, the price of RON95 is cheaper then Peninsular but that had been change long time ago. Many of my Sabahan and Sarawakian friends are discussing these, I think Datuk Seri Najib recent visit to these two states doesn't enlight him about the cost of living there.
Today is holiday.., just remember not to wake up and go to your office in the morning.
Happy Labour Day to all my readers.
