Ministry to review minimum wages policy

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SANDAKAN: The Human Resource Ministry will be reviewing the minimum wages policy that was fully implemented early this year.

Its deputy minister, Datuk Haji Ismail bin Haji Abd Muttalib, said the review would transform Malaysia from a middle-income to a high-income nation by the year 2020.

However, he stressed that the review does not necessarily mean that the recent minimum wages quantum will be increased but would be more focused on the effectiveness of minimum wages implementation.

“The review is intended to create a win-win situation between employees and employers. It is important to determine that the minimum wages policy will not burden employers, especially the small and medium enterprises (SMEs).

“It is also to ensure that wage increases are in line with the cost of living, thus enabling employees to afford basic necessities,”Ismail added.

Therefore, he said the ministry had recently held a review seminar on the Minimum Wages Order 2012 with the International Labour Organisation (ILO) and World Bank to identify relevant indicators that should be taken in consideration of the suggestions from stakeholders.

He said based on the National Wages Consultative Council (NWCC) Act 2011, the Wages Regulation Order was set to be reviewed at least once in two years.

“The existing order was gazetted in 2012, this means that the order should be reviewed in 2014 and subsequently enforce a new order in 2015. Therefore, I urge industry players nationwide to give their input to NWCC before this upcoming May 31 for the consideration of NWCC.

“Their inputs and opinions can comprise of aspects of minimum or relevant minimum wages or other related wages,” he said during a press conference on the Minimum Wages Nationwide Clinic held at Sabah Hotel here yesterday.

The program was the seventh in the series of eight held nationwide to give exposure to industry players on the latest development of minimum wages, especially on the incentives packages, monetary aid, automation grant facility and so forth.

The Minimum Wages Nationwide Clinic held yesterday was divided into several segments, namely, explanation about the latest development on the basis of the minimum wages, financial aid package element, incentive budget and labour productivity.

The Human Resource Ministry through the Labour Department has fully enforced the Minimum Wages Order 2012 since January 2014.

Up to March 31, 2014, the Labour Department has issued compliance notice to 179 employers who failed to comply with the Minimum Wages Order, while the department has also solved 69 out of 261 labour claims reported nationwide.