Plan for Sectoral Minimum Wages
Today’s current minimum wage policy is being revised by The Federal Government in favour of having sectoral wages instead of blanket wages for all sectors.
Our Human Resource Minister, M Kula Segaran, said a sectoral based Minimum Wage would be easier and more realistic. With the current policy, a sudden steep jump in rates has caused many businessmen to close down some of their outlets.
“My take is that it would be sectoral based. Which means each sector has its minimum wage, like plantations will have their own, hotels their own, coffeeshops their own and so on, which will be easier, realistic and more current,” he told a press conference after a closed-door dialogue with Malaysian Employers Federation (MEF) Sabah at the Pacific Sutera Hotel, Monday.
Segaran also said that, under law, the new Minimum Wage will be applied and revised within two years. “But the revision study will be very soon. It is subject to Federal Cabinet approval.”
When asked whether the rate will be uniform between Sabah, Sarawak and Peninsula, Segaran said it will be uniform at the sector-level. For example, the minimum wage for plantations in Sabah will be the same as in peninsula.
Segaran said the Ministry would also amend the Employment Act, the Industrialisation Act, the Trade Union Act, the Occupational and Safety Act, the Socso Act, the Employment Insurance System Act, the Human Resource Development Fund Act and all related matters.
“These acts are outdated. We are going to make them more current,” he said, adding on the amendment to the Employment Act, the Ministry may be looking at increasing the number of days for maternity leave to 98 days and also bring other fundamental changes.