THE government’s move to increase the minimum wage to RM1,200 is deemed as myopic as it does not truly address the issues of cost of living faced by those working in areas where minimum wage has been maintained at RM1,100.
Parti Sosialis Malaysia (PSM) deputy chairperson S Arutchelvan tells FocusM the recent government decision of increasing the minimum wage to RM1,200 but limiting it to 57 city and municipal councils shows lack of commitment towards the plight of the B20 group.
Both Malaysian Trade Union Congress (MTUC) and PSM had earlier asked the government to raise the minimum wage to RM1,800 to help the lower-income group to meet the escalating cost of living.
“Increasing the wage but restricting it to 57 areas is not fair as the cost of living in the smaller areas is also high and a RM1,100 minimum wage is not sufficient for workers in those areas,” says Arutchelvan.
He adds that segmentisation of the minimum wage would also lead to administrative challenges and it would have been better to standardise it across the board.
Meanwhile, the Malaysian Employers Federation (MEF) executive director Datuk Samsuddin Bardan tells FocusM the timing of the minimum wage implementation is unfortunate as most employers are reeling from the lethargic economy.
“We appeal to the government to reconsider the move as many employers are on the cusp of making the difficult decision of retrenching or downsizing and this move to increase the minimum wage will add to their predicament,” says Samsuddin.
He adds that there are currently more than two million foreign workers in the lower salary group who will benefit from the minimum wage increase. They would in all possibility repatriate their excess funds to their country of origin than to spend it in the country.
Bardan says the move would be counter- productive to the economy.
The new minimum wage will take effect from Jan 1, 2020, for all employers and the order would be gazetted soon in line with the decision.
Details on the minimum wage according to hours and days as well as workers paid according to piece rate, trip, commission, tonne and task would be provided under the new minimum wage.
According to a statement from the Ministry of Human Resources, this follows the tabling of Budget 2020 and the decision of the Cabinet on Dec 6 on the implementation of the RM1,200 minimum wage per month in major towns.
The ministry said the minimum wage would be applicable to all workers in the private sector except domestic service as stipulated in the Minimum Wages Order 2018.
Among the cities listed are Johor Bahru, Iskandar Puteri, Alor Setar, Melaka, Penang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, North Kuching, South Kuching, Miri, Kota Kinabalu, Kuala Lumpur, while the major towns are Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu and Kota Bharu.
Also listed are Alor Gajah, Jasin, Hang Tuah Jaya, Seremban, Nilai, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang, Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan and Putrajaya.
The ministry said the minimum wage rate would continue to be reviewed to ensure it is in line with current needs and with the objective of achieving a minimum wage of RM1,500 a month in the first five years of Pakatan Harapan’s administration. – Dec 23, 2019
