IPOH: There are still unscrupulous employers failing to comply with the RM1,500 minimum wage order that came into effect two years ago, said Malaysian Trades Union Congress (MTUC) president, Mohd Effendy Abdul Ghani.
Effendy stated that MTUC continues to urge the government to be more aggressive in identifying employers who persistently evade compliance or seek ways to reduce wage costs.
“As stated by the Minister of Economy, Rafizi Ramli, while presenting the White Paper on Progressive Wage Policy in Parliament last year, there are still 10 percent of formal workers receiving wages below the minimum rate of RM1,500 per month,“ he said at a press conference here last night.
The press conference was held after the MTUC Dinner and 2024 Labour Day celebration, which was also attended by the Perak state Committee on Human Resources, Health, Indian Community Affairs, and National Integration chairman, A. Sivanesan.
Previously, the 2022 Minimum Wage Order (PGM) took effect on May 1, 2022, setting a minimum wage of RM1,500 per month for all sectors, irrespective of location, applying to employers with five or more employees.
However, under previous regulations, enforcement of the PGM for employers with fewer than five workers was deferred from Jan 1, 2023, to July 1, 2023.
Mohd Effendy suggested that the government announce a new minimum wage rate after a thorough two-year review of the order for the benefit of Malaysian workers, in line with the rising cost of living.
“However, the most crucial aspect is the enforcement of the PGM compliance. Even if the minimum wage is raised to RM1,800, if enforcement remains weak, we will continue to face the same issues due to some unscrupulous employers,“ he stated.
The implementation of the minimum wage order can enhance local workers’ income, thereby boosting the country’s economy towards achieving high-income nation status, he emphasised.
He noted that a balanced approach between employers and employees would also reduce the country’s reliance on foreign workers and ensure non-discrimination in the workplace based on race or gender.
