Only 600 firms allowed to postpone implementing minimum wage

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PUTRAJAYA: Only 600 out of 4,200 employers are allowed to postpone implementing the minimum wage which will take effect on Jan 1, 2013.

Human Resources Minister Datuk Seri Dr S Subramaniam said they were allowed to do so after taking into consideration the companies’ financial situation, while the other companies were bound by the regulation from this coming January.

“The (600) companies informed that they have been experiencing financial losses in the last two or three years and have submmitted their audited financial reports to the National Manpower Advisory Council.

“Hence, the council has agreed to give a postponement of three to six months to the companies involved to enable them to restructure and strengthen their financial position. That is the council’s decision, not the ministry’s,” he told a press conference after chairing the council’s fourth meeting, here, yesterday.

The announcement on minimum wage for workers in the private sector was made by Prime Minister Datuk Seri Najib Tun Razak on April 30 and gazetted on July 16.

The 2012 order on minimum wage will be enforced from Jan 1, 2013 and the rate will be reviewed every two years.

The minimum wage is mandatory and the government has set the rate at RM900 for the peninsula and RM800 for Sabah, Sarawak and Labuan.

On the cost of hiring Indonesian maids which has not been finalised by both countries, Dr Subramaniam said Malaysia had once again asked the Indonesian government to set a reasonable rate.

“The most recent in Bandung (last week), we had a joint task force meeting and there the agencies from both sides (Malaysia and Indonesia) made their representation and submitted the figures to us. To us, it is quite high at RM11,000 to RM12,000.

“We informed the Indonesian government about it at the bilateral meeting two days ago and we have asked them to resubmit more affordable figures and our secretary-general will meet and discuss (with the Indonesian side) to come to something more reasonable,” he said. — Bernama