KUALA LUMPUR, March 24 — The Ministry of Human Resources (KSM) is deliberating on the detailed mechanism and methods for the implementation of the minimum wage of RM1,500 per month policy, the Dewan Negara was told today.
Deputy Human Resource Minister Datuk Awang Hashim said details of the methods which would take into account the interests of all parties would be tabled at the next Cabinet meeting.
“The ministry understands the concerns of small and medium traders when the minimum wage is raised to RM1,500, therefore, we will hold discussions with the Entrepreneur and Cooperative Development Ministry before making a decision on the matter.
“The ministry has also drawn up strategies and action plans to ensure that the implementation of the minimum wage policy can help the people to meet basic needs,” he said when winding up the debate on the motion of thanks on the Royal Address for his ministry, at the Dewan Negara sitting, here, today.
He said employers who failed to pay their employees basic salary as stipulated in the minimum wage order could be fined up to RM10,000 per employee, if found guilty.
Awang said Act 372 also provides the power to the Manpower Department of Peninsular Malaysia, Sabah and Sarawak to conduct enforcement and investigation with regards to the implementation of the minimum wage.
He said this was part of the government’s initiatives to increase the contribution of employees’ compensation to Gross Domestic Product (GDP) by 40 per cent, in addition to achieving the median monthly salary target of RM2,900 by 2025 through the 12th Malaysia Plan.
“The implementation of this minimum wage is in line with the Keluarga Malaysia concept which outlines three main thrusts namely inclusion, togetherness as well as gratitude and it will also be able to stimulate the domestic economy through increased purchasing power of workers,” he said.
Prime Minister Datuk Seri Ismail Sabri Yaakob has previously announced that the government had agreed to increase the minimum wage to RM1,500 effective May 1.
