Nation

Minimum wage deferment not permanent exclusion, employers reminded

ALOR STAR: The government's decision to defer the implementation of the RM1,500 monthly minimum wage for certain sectors until the end of this year, should not be perceived as a permanent exemption.

Human Resources Deputy Minister Datuk Awang Hashim said the government granted the deferment based on an understanding that certain sectors needed time to recover from the impact of Covid-19.

"I wish to remind that the deferment is until Dec 31 2022. During this period, we allow all parties to air their concerns and will take them into consideration.

"The deferment is until Dec 31. Today is May 12. So we have seven months to go, and there are plenty of time to discuss and consider," he told reporters after attending the Kedah Perkeso Hari Raya open house here today.

Awang also stressed that the exemption for the new monthly minimum wage to be enforced by Jan 1, 2023 for employers with less than five employees, did not include employers from professional sectors such as legal firms and private clinics.

"This means, although employers in these professions have only three employees, they will not be exempted from the new RM1,500 minimum wage," he added.

On criticism by a women's rights activist regarding the exclusion of domestic helpers from the new minimum wage, Awang explained that was not the case, as it also applied to them.

"Local domestic workers are not exempted from the implementation of the minimum wage as well, just like other sectors.

"For Indonesian domestic workers (PDI), the agreed payment is based on a memorandum of understanding (MoU) between the governments of Malaysia and Indonesia," he added.

Last month, Malaysia and Indonesia inked an MoU on the recruitment and protection of Indonesian domestic helpers in Malaysia which would effectively set the minimum monthly wage at RM 1,500.

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