Right timing for increasing minium wage

by | Apr 16, 2022 | Business, HUMAN RESOURCES | 0 comments

In a quick check by The Malaysia Voice, it was discovered that most employers want any increase in the minimum wage level to be done on a staggered basis or in stages so that businesses can adapt, cope and absorb such increases in the wages of employees.

The Federation of Malaysian Manufacturers (FMM) in a survey among its members discovered that a RM100 increase in the minimum wage, given the current economic conditions, is acceptable with another increase towards the end of the year until it reaches RM1,500 in 2023.

The Malaysian Indian Muslim Restaurant Owners Association said the implementation of the minimum wage level is too soon for industry players who are still trying to recover from the pandemic.

So far there are no details of the implementation of the RM1,500 minimum wage ruling which is to take effect on May 1 and many businessmen are waiting anxiously to see how the government goes about it.

While agreeing with the Human Resources Ministry, the National Chamber of Commerce and Industry Malaysia said most SMEs will be badly affected and they are upset that the ministry did not consult business groups on the minimum wage hike.

The SME Association of Malaysia agreed, saying that more employees will leave for higher pay at the bigger companies thus causing production problems and a worker shortage for smaller or exempted businesses.