Unscrupulous Employers Still Not Complying With Minimum Wage Order Says Mtuc

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The MTUC president called for the government to conduct a thorough two-year review to increase the minimum wage, in line with the rising cost of living.IPOH: There are still unscrupulous employers failing to comply with the RM1,500 minimum wage order that came into effect two years ago, according to Malaysian Trades Union Congress (MTUC) president Effendy Abdul Ghani.
Effendy said 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 economy minister Rafizi Ramli when presenting the White Paper on the Progressive Wage Policy in Parliament last year, there are still 10% 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 A Sivanesan, who is the chairman of the Perak state committee on human resources, health and Indian community affairs.

Previously, the 2022 Minimum Wage Order 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.
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 minimum wage order. 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 said.
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. - FMT

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