Minimum wage directive needs fine-tuning - Willie

KUCHING: The implementation of the minimum wage of RM1,500 effective May 1 needs fine-tuning so that the matter does not burden companies and entrepreneurs in small and medium industries in the country.

Plantation Industries and Commodities Deputy Minister Datuk Willie Mongin said the matter needed to be considered, including the burden that may be faced by some companies or entrepreneurs, especially those who are just starting.

"I hope the government can look into this minimum wage scheme because we do not want to see entrepreneurs who have just expanded their business and are new to the business world affected because it may be burdensome," he said after officiating the Segu Bunuk Penrinssen Association (PSBP) office in Kampung Bunuk, Borneo Peak Road, here, today.

Willie also hopes that the minimum wage scheme will be implemented with a 'win-win situation' formula and not put too much pressure on entrepreneurs.

"If they have 1,000 employees and have to pay a minimum salary of RM1,500, it will be very burdensome because they not only have to pay the basic salary but also see an increase in SOSCO and EPF contributions," he said.

In addition, he said after two years of facing the COVID-19 pandemic and while the country is rebuilding its economy, this would add to the challenge for them to comply with the minimum wage directive.

When asked whether the implementation of the minimum wage could be delayed, Willie said the matter was up to the decision of the top leadership and the government cabinet as well as the Ministry of Human Resources.

"For me personally, I request that they consider this matter first because for me we have to identify the challenges these entrepreneurs are facing," he said.

-- BERNAMA