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THE government should put more effort into monitoring enforcement of the new minimum wage rate in the country.
There have been complaints made by some workers that their employers have not made the necessary adjustment to the new minimum wage rates announced by the government recently.
Furthermore, there are also complaints that some employers have taken away employee benefits to cover the new minimum wage increase.
All these complaints need to be investigated and addressed immediately to avoid confusion and compounding the problems on workers, who are dealing with financial stress and the increase cost of living.
Recently, the government decided to increase the minimum wage rate in Malaysia.
Beginning May 1, the minimum wage for employees under a company that employs five employees or more and those employed by a Malaysia Standard Classification of Occupations (Masco) employer, regardless of the number of employees, will increase to RM1,500 per month from the present minimum monthly wage of RM1,200 and RM1,100 for places of employment within a City Council or Municipal Council area.
An employee working for a company that employs less than five workers (other than those employed by a Masco employer) will continue to earn a minimum monthly wage of RM1,200 and RM1,100 until Dec 31.
After that, their minimum monthly wage will also be increased to RM1,500 in tandem with the minimum wage for employees employed in Malaysia.
The widely anticipated Minimum Wages Order 2022 (the Order) was gazetted on April 27.
The Order was made under Section 23 of the National Wages Consultative Council Act 2011 (Act 732), which increases the minimum wage to RM1,500 nationwide starting May 1.
There is a temporary exemption from the increase for employers with fewer than five employees until Dec 31.
According to Section 2 of the National Wages Consultative Council Act 2011 (Act 732) “minimum wages” means the basic wages to be or as determined under Section 23 of the same Act. Minimum wages are basic wages, excluding any allowances or other payments.
All local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages.
Under the same Section and Act, a “contract of service” means any agreement, whether oral or in writing, and whether express or implied, whereby one person agrees to employ another person as an employee and that other person agrees to serve his employer as an employee but does not include an apprenticeship contract.
Domestic servants (e.g maids, cooks, guards, gardeners and personal drivers) and apprentices who undergo training for a period not less than two years will not be covered by this minimum wage.
All employers concerned must enact the new minimum wage rates and abide by the government’s decision on such matters.
Failure to do so will be considered an offence and can be penalised under existing laws.
According to Section 43 of the National Wages Consultative Council Act 2011 (Act 732), “An employer who fails to pay the basic wages as specified in the minimum wages order to his employees commits an offence and shall, on conviction, be liable to a fine of not more than RM10,000 for each employee”.
Section 44 of the same Act further adds:
1. Where the employer has been convicted of an offence under section 43, the court before which he is convicted may order the employer to pay (a) the difference between the minimum wages rate as specified in the minimum wages order and the basic wages paid by the employer to the employee, including the outstanding differences; and (b) other payments accrued from the calculation of wages based on the basic wages which shall be in accordance with the minimum wages rates as specified in the minimum wages order.
2. The calculation of the differences and other payments accrued under subsection (1) shall be made in accordance with the Employment Act 1955, Sabah Labour Ordinance or Sarawak Labour Ordinance, as the case may be.
3. Where an employer fails to comply with an order made under subsection (1), the court shall, on the application of the employee, issue a warrant to levy the employer’s property for the differences and other payments accrued under subsection (1) in the following manner: (a) by way of distress and sale of the employer’s property in accordance with the same procedure of execution under the Subordinate Courts Rules 1980 [P.U. (A) 328/80] and this execution shall apply mutatis mutandis notwithstanding the amount in the order; or (b) in the same manner as a fine as provided under section 283 of the Criminal Procedure Code (Act 593)”.
Section 46 of the Act stipulates that “Any person convicted of an offence under this Act shall, in the case of a continuing offence, be liable, in addition to any other penalty to which he is liable under this Act in respect of such offence, to a daily fine not exceeding RM1,000 for each day the offence continues after conviction”.
Any person convicted of an offence under this Act shall, in the case of a repeated offence, be liable to a fine not exceeding RM20,000 or to imprisonment for a term not exceeding five years. This has been mentioned under Section 47 of the Act.
On record, Malaysia in January 2013 introduced minimum wage rates of RM900 per month (or RM4.33 per hour) for Peninsular Malaysia and RM800 per month (or RM3.85 per hour) for Sabah, Sarawak and the Federal Territory of Labuan for those working with employers with more than five employees or employers who carry out professional activity according to the Masco classification, but also with a deferred implementation date of July 2013 for employers with fewer than five employees.
The minimum wage rates were revised and increased from July 2016 onwards to RM1,000 monthly in Peninsular Malaysia and RM920 monthly in Sabah, Sarawak and Labuan.
That translated to a minimum rate of RM4.81 per hour or daily rates of RM38.46 for a six-day work week, RM46.15 (five-day), RM57.69 (four-day) in Peninsular Malaysia, and a minimum rate of RM4.42 per hour or daily rates of RM35.38 (six-day), RM42.46 (five-day), RM53.08 (four-day) for Sabah, Sarawak and Labuan.
The minimum wage rate was initially raised to RM1,100 nationwide from January 2019, and the additional category of RM1,200 minimum wage rate kicked in from Feb 1, 2020.
The RM1,200 rate was initially applicable to places of employment under a gazetted list of 16 city council areas and 40 municipal areas, from Feb 1, 2020, onwards.
From that point onwards, a January order this year by the human resources minister removed the gazetted list of city council areas and municipal areas where the RM1,200 rate applied, with such areas defined according to local government laws instead (Local Government Act 1976, Local Government Ordinance 1961 (Sabah No. 11 of 1961), Local Authorities Ordinance 1996 (Sarawak Cap. 20), including Putrajaya and Labuan).
Any plan to review the minimum wage rates in the country should give priority to the issue of the cost of living as well as the financial stress facing all workers regardless of the working sectors they belong to.
Though various factors should be taken into consideration by the government in setting the minimum wage rates in the country, the cost of living factor as well as the financial hardships employees face should be given top priority.
Workers need to receive wages that are in line with the current cost of living.
Wages that are not in line with the current cost of living could lead to many problems for workers and their families who depend on them.
Before finalising any decision on the issue, the government must study its plan or proposal on the matter carefully and have the necessary discussions with all the relevant stakeholders such as the workers themselves, the Malayan Trade Union Congress as well as the Malaysian Employers Federation.
This is in line with the spirit of the National Wages Consultative Council Act 2011 (Act 732) itself as stipulated under Section 4.
Besides making adjustments to the minimum wage, the government could also consider introducing more special allowances for workers to ease their financial hardship.
Any workers who feel that their employer has ignored their basic right to receive the minimum wage should immediately lodge a complaint with the Labour Department or National Wages Consultative Council Secretariat at the Human Resources Ministry.
Comments: letters@thesundaily.com
