RM1,500 Minimum Wage For Employers With Less Than 5 Workers Starts Now
The government approved the new minimum salary on 19 March 2022, but the implementation was postponed for employers with less than five workers due to economic and financial challenges.
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Starting today (1 July), a minimum wage increase of RM1,500 will be implemented for employers with fewer than five workers.
The government set this date late last year after employers with fewer than five workers were allowed to defer the minimum wage for up to six months instead of 1 January.
The implementation covers all sectors except domestic services, including cultivation, agriculture, and manufacturing.
The government approved the new minimum salary on 19 March 2022.
Bagi SME & MSME,
— Iskandar Danial (@_IskandarDanial) June 30, 2023
Sekiranya digitalisasi mampu menggantikan pekerja, boleh retrench dan gantikan
Sekiranya tidak boleh, maka naikkan sahaja harga jualan tapi pastikan jangan menggajikan pekerja bawah gaji minima. https://t.co/440AUA6qAi
However, for employers with less than five workers, the government has justified posting the implementation of the minimum wage.
The decision was made after the government considered the views of various affected parties, which are expected to face economic and financial challenges in the coming year.
Minister for Human Resources V Sivakumar said the government had also considered the willingness of employers to pay a new minimum wage for their employees.
Insufficient Due To The Rising Cost Of Living And Prices
The government has been facing pressure from various groups to raise the minimum wage sustainably.
Critics said the minimum wage is insufficient due to rising living costs and prices.
They advocate for a higher minimum wage to address the issue of income inequality and help low-wage workers afford necessities.
They believe increasing the minimum wage would help alleviate poverty and reduce income inequality in the country.
Minimum wage in Malaysia will be at least RM3,000 in a properly competitive labour market without the presence of cheap imported foreign employees.
— khalid karim ARISE MALAYSIA (@khalidkarim) June 25, 2023
The cost of living will, of course, be greater, but workers will still have more disposable cash.
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