Minimum Wage Deferment Only Applicable for MSMEs

The government’s decision to defer the implementation of the RM1,500 monthly minimum wage for certain sectors until the end of this year.

Human Resources Deputy Minister Datuk Awang Hashim stressed the government granted the deferment based on an understanding that certain sectors needed time to recover from the impact of Covid-19.

“I wish to remind that the deferment is until Dec 31 2022. During this period, we allow all parties to air their concerns and will take them into consideration.

“The implementation of the minimum wage of RM1,500 under Minimum Wage Order 2022 is only exempt for employers with five employees or less involving the MSMEs.”

“However, employers with the professionalism such as lawyers or doctors can not adopt deferment,” he was quoted as saying to reporters in a press conference after the Socso Hari Raya Aidilfitri Celebration at Wisma Perkeso Kedah here today.

Awang said the postponement until the end of this year for the sectors involved was to give an opportunity to the employers involved to prepare, especially those affected by the Covid-19 pandemic.

It is widely reported that the government approved the implementation of a new minimum wage of RM1,500 on May 1 nationwide.

Recently, the Malaysian Employers Federation (MEF) proposed that the minimum wage increase be implemented in stages to enable pandemic-affected companies to recover.

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