There are still unscrupulous employers failing to comply with the RM1,500 minimum wage order that came into effect two years ago, said Malaysian Trades Union Congress (MTUC) president Mohd Effendy Abdul Ghani.
Effendy said 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 Economy Minister Rafizi Ramli, while presenting the White Paper on Progressive Wage Policy in Parliament last year, there are still 10 percent of formal workers receiving wages below the minimum rate of RM1,500 per month,” he said
The 2022 Minimum Wage Order (PGM) took effect on May 1, 2022, setting a minimum wage of RM1,500 per month for all sectors, irrespective of location. It applies to all employers with five or more employees.
However, enforcement for employers with fewer than five workers was deferred from January 1, 2023, to July 1, 2023.
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 PGM compliance. 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 stated.
