The Minimum Wage Order 2012 Gazetted

The Minimum Wage Order 2012, which was gazetted on16 July 2012, will take effect on 1 January 2013 for employers who employ six workers or more.

For employers, who employ five workers or less, the date of enforcement will be on 1 July 2013, said a statement from the Human Resource Ministry.

It said the commencement date also applied to employers who were carrying out professional activities classified under the Malaysian Standard Classification of Occupations (MASCO) regardless of the number of employees.

The Minimum Wage Order 2012 was gazetted in accordance with Subsection 23 (1) of National Wage Consultation Council 2011.

Further information on the gazette entitled the 'Minimum Wage Order 2012 P.U. (A) 214/2012 can be referred to at www.federalgazette.agc.gov.my.

According to the gazette, the minimum wage rate was fixed at RM900 per month or RM4.33 per hour for the peninsular and RM800 per month or RM3.85 per hour for Sabah and Sarawak.

Seminar on Implementation of Minimum Wages Order

Seminar on Implementation of Minimum Wages Order 2012 jointly organised by the Department of Labour Sarawak and National Wages Consultative Council, Ministry of Human Resources on 20 September 2012 at Riverside Majestic Hotel, Kuching.

Opening Speech by Tuan Haji Mohd Zubir bin Mohd Basri, the Secretary-General of National Wages Consultative Council (Ketua Urusetia, Majlis Perundingan Gaji Negara).

The Briefing was presented by Mr. August Buma, the Director of Department of Labour Sarawak.

Mr. Lai King Min (centre), the President attended the Briefing on Implementation of Minimum Wages Order 2012.

Issues on Minimum Wage for foreign workers

National Wages Consultative Council (NWCC) has issued a Press Statement on 19th March 2013, stating that Government has decided to defer the implementation of minimum wage for foreign workers of SMEs as follows:

(1) Local employees (citizens) must be paid minimum wage as per the Order;

(2) Employers in SMEs are given blanket deferment of the implementation of the
minimum wage for their foreign workers until 31st Dec 2013;

(3) Employers who have been given deferment are not allowed to make deductions from
the foreign workers wages for levy, cost of accommodation or other allowances;

(4) Employers who are implementing minimum wages are given a blanket approval for
deductions of levy and cost of accommodation. The amount of levy to be deducted is the actual amount on a prorated monthly basis and the amount of accommodation shall not exceed RM50 per month per foreign worker. Both the deductions above need to be notified to the nearest Labour Department via email or letter;

(5) However, in special circumstances, based on individual merits, the Labour
Department may consider applications for cost of accommodation exceeding RM50 a month for each foreign worker;

(6) Employers, other than SMEs, who face difficulties in implementing minimum wages
may apply for deferment on individual basis to the Secretariat of NWCC before 30th June 2013 by submitting the following supporting documents:

(a) Registration with Company Commission of Malaysia (SSM);
(b) Audited account for 3 years; and
(c) Number of local and foreign workers employed, as well as their salary report.

Submit to:
The Secretary
Majlis Perundingan Gaji Negara
Kementerian Sumber Manusia
Aras 7, Block D3, Kompleks D
Pusat Pentadbiran Kerajaan Persekutuan
62530 PUTRAJAYA
No. Tel: 03-8886 5156 / 5162
Faks: 03-8889 2377
Email: mpgn@mohr.gov.my

For the purposes of applying for a deferral of the commencement date of the Minimum Wages Order 2012, MEF had prepared a template letter that may be used by members in making the application. The said template letter is available at SMA Secretariat:

Tel: 082-244682 (SMA Office Hours: 1.30 pm till 4.30 pm)
Fax: 082-248923
E-mail: sma@smasarawak.com.my, sma1963@streamyx.com

Posted Date: 17 Jul 2012