Minimum wage: No more deferment by 2014

The Human Resources Ministry will no longer tolerate deferments on the implementation of minimum wage by January 1, 2014.

Employers can expect to face penalties, which includes a RM10, 000 fine for each worker that has not been paid the fixed monthly RM900 in semenanjung and RM800 in Sabah and Sarawak.

As of today, the Human Resources Ministry said they have received 300 complaints and information on employers who have not implemented minimum wage.

“However, we try to reconcile and work on the issues faced by the company, usually they will comply. But next year we must ensure they fully implement it. If they don’t pay there are no other ways, the enforcement will come,” said Asri Ab Rahman deputy director-general of the Labour Department.

Earlier, Minister Datuk Richard Riot briefed reporters on the matter, saying that government wants all companies to adhere to the Minimum Wage Order 2012 by 2014 at the latest.

The Order requires all companies that hire six or more workers to begin implementation by Jan 1, 2013. For micro agencies with less than five workers were to begin implementation by July 1.

However, Government has in December 28, 2012 allowed 632 individual employers from the

Persatuan-persatuan Pengusaha Bas Awam, Persatuan Kawalan Keselamatan Malaysia and Persatuan Hotel-hotel to defer implementing minimum wage at April 1, July 1, and October 1 respectively.

As for Small and Medium-sized Enterprises (SMEs), there is a blanket deferment allowed for foreign workers only between June 1 until December 31. SMEs will still have to pay minimum wage for local workers.

Apart from that, 40 big companies (with above 150 workers) have been allowed to delay till end of this year.

As of June 30, the Ministry has received as many as 247 micro agencies and 743 big employers who have applied for deferment. These cases are still being considered by the National Wages Consultative Council and will be announced soon.

“The thing with deferments is that not at every request will be accepted. We will look at the request and decide base on all factors,” said Richard.