Tuesday, September 27

Riot: HR Ministry awaits Cabinet’s nod on new minimum wage rate

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KUALA LUMPUR: The Human Resources Ministry is still awaiting the Cabinet’s approval to determine the new minimum wage rate, said its minister Datuk Seri Richard Riot Jaem.

He said a review was conducted through the National Wage Consultative Council (NWCC) by holding discussions with employers and workers besides taking into account the rising cost of living faced by the people at present.

“In accordance with the Minimum Wage Order 2012, a study or review has to be conducted twice a year.

“The review is now ready and is waiting for the Cabinet’s approval.

“The Cabinet paper has been prepared, I don’t want to mention (the new minimum wage rate) here (Dewan Rakyat),” he said when winding up the debate on his ministry on the motion of thanks on the Royal Address by the Yang di-Pertuan Agong at the Dewan Rakyat here yesterday.

However, he said in the review, the minimum wage rate for Sabah and Sarawak could not be the same as that in the peninsula.

“In the review, the need for equal minimum wages in Sabah and Sarawak with that in the peninsula was raised but the technical committee decided that it could not be the same,” he said.

At present the mimimum wage rate for Peninsular Malaysia is RM900 per month or RM4.33 per hour while for Sarawak, Sabah and the Federal Territory of Labuan. it is RM800 per month or RM3.85 per hour.

Riot also said the minimum wage rate that was fully implemented on Jan 1 2014 was successful as only one per cent of employers had failed to implement it.

Up to Jan 31 this year, he said, 42,297 statutory inspections was conducted by the Labour Department with 587 or one per cent of employers found to have not implemented mimimum wages.

Compliance notices had been issued to the errant employers, he said.

Meanwhile, Riot said the government had set up a committee as a medium to address the Malaysia Airlines (MAS) labour issues on its restructuring and recovery.

He said the committee would comprise members from his ministry, Khazanah Nasional Berhad, Cooperative Commission Of Malaysia, Perbadanan Nasional Berhad and Counselling and Credit Management Agency. — Bernama