Minimum wage to be fully enforced next January

Human Resource Minister Datuk Richard Riot reiterated that the government had taken into consideration the issues affecting the various sectors in the country before its implementation.

"A large number of employers from almost all sectors in the country have given explanation on their inability (to implement the system) and requested for deferment and we have postponed it till Dec 31 this year. The minimum wage will be fully enforced in January next year throughout the country," he told Bernama after presenting certificates to graduates of the Industrial Training Institute (ITI) here Sunday.

Riot said the minimum wage system implementation would apply to all employers regardless of location of their business activities.

"Whether their business are in townships or anywhere, they are not exempted from this implementation," he said.

Riot said the postponement was made due to various reasons, including the financial capability of the companies to implement the minimum wage.

The Minimum Wage Order 2012 was to be enforced on Jan 1, 2013 with the rate to be studied every two years. However, after requests from 400 applications from companies seeking for the date to be pushed to Dec 31, it was postponed.

The announcement of the RM900 monthly minimum wage for the private sector for the peninsular and RM800 a month in Sabah, Sarawak and Labuan was made by the Prime Minister on April 30 last year and gazetted on July 16.

Riot said the deferment of the system was through a thorough study of the National Wages Consultative Council.

"The study was made on a case-by-case basis…and the deferment and relaxation were only given after the council was convinced that there was a need to do so," he said.

The Minister also said there was no written request thus far on the predicament of oil palm players for another postponement due to the depreciation of palm oil process globally.

“Most of the workers in the plantation sector are foreign workers. Locals of Sabah, Sarawak and Peninsular are not keen to work in this sector…whether we like it or not, this is the issue we are facing now,” he said.   A reported earlier had quoted the ministry’s secretary-general, Zainal Rahim as saying that a total of 247 “micro enterprises” and 743 large companies had applied for such deferment.

A micro enterprise is defined as an establishment that employs five workers or fewer. Companies falling under this category are supposed to start implementing the policy today.