PETALING JAYA | Workers have accused their companies of reducing allowances and benefits following the implementation of the new minimum wage, according to the Malaysian Trades Union Congress (MTUC).
In a statement, MTUC secretary-general Kamarul Baharin Mansor said the union received complaints that companies have reduced benefits, such as canteen food subsidies and transport allowances, among other things.
MTUC warned such companies that any reduction in existing benefits and allowances to workers because of the new minimum wage rate was a “betrayal” of the government’s efforts to increase the income of the B40 group.
It urged all workers to report such acts to the union’s headquarters or nearest labour department so action can be taken against these companies.
It also urged labour departments to be proactive by checking if companies have paid the new minimum wage rate and to ensure every complaint received is dealt with immediately.
MTUC will get special officers to prepare reports, take action, and provide workers with information regarding the new minimum wage rate.
On March 19, Prime Minister Ismail Sabri Yaakob announced that the government was increasing the minimum wage to RM1,500 per month, with effect from May 1.
The Minimum Wages Order, which was issued by human resources minister M Saravanan, was published on April 28 in the Federal Government Gazette and uploaded on the official website of the Attorney-General’s Chambers (AGC).
According to the gazette, under Paragraph 4(1), an employee who is not paid basic wages but based on piece rate, tonnage, task, trip or commission, the monthly wage rate payable to the employee with effect from May 1 shall not be less than RM1,500.
The gazette also states that the minimum wage of RM1,500 effective May 1 is exempted for an employer who has fewer than five employees. However, such exemption is only till the end of the year, with full compliance required from Jan 1, 2023.
