Final month, it was introduced by Malaysian Prime Minister Ismail Sabri Yaakob that the minimal wage in Malaysia will probably be elevated to RM1,500 (US$ 354) from its earlier RM1,200 (US$283).
Whereas the rise was to be carried out nationwide, the Malaysian Human Assets Minister, M. Saravanan, has now come out to say that for now, the elevated wage won’t apply to all employment sectors.
As a substitute, some sectors are allowed some flexibility as soon as the implementation comes into impact. These exempted events embody firms which have lower than 5 staff, those that work odd jobs, and sectors which can be dealing with big losses from the COVID-19 pandemic, particularly the hospitality and tourism sectors.
“Odd-job staff are nonetheless incomes RM500 to RM600 wage. If I pressure firms to pay them RM1,500, they may quickly be out of a job,” he mentioned throughout the launch of the Microcredential HRD Corp initiative, an initiative aimed toward offering people with quick programs to upskill themselves professionally.
The exemption was made after requests from the Prime Minister, and the Cupboard. The federal government will give a one-year interval of flexibility for any celebration in want, and this might be prolonged in line with the minister’s purview.
The medical sector speaks out.
Weighing in for the medical aspect, the Malaysian Medical Affiliation (MMA) claims that the minimal wage hike might place a bigger burden on small clinics run by common practitioners.
Why? In keeping with MMA President Dr Koh Kar Chai, the clinics, particularly impartial ones, might be thought-about as low-income incomes companies. He mentioned that their session charges are managed below the Personal Healthcare Amenities and Companies Act 1998, and that their costs usually, are managed by third-party directors.
The rise in minimal wage would then be a burden as a result of the final practitioners haven’t got the avenue to extend their medical costs to compensate for the upper wage of staff. He additionally added that a lot of the employees employed in non-public clinics will not be educated medical assistants or nurses.
“Personal clinics will not be like different sectors the place worth will increase might be handed on to the shoppers,” he mentioned. “The healthcare apply is closely regulated.”
He mentioned that whereas a minimal wage would enable for a better high quality of dwelling, the supply of high quality major healthcare at inexpensive charges to the general public can be important to the upkeep of the well being of the nation.
There are two sides to a coin.
Though the opinions given do elevate sure legitimate questions, there exists a divide in opinions concerning the elevate. As a result of sure, it is going to price the employers extra on the finish of the day, however however, the workers can earn extra money to assist them get by. Because it stands, there stay many who’re nonetheless struggling to make ends meet with minimal wage.
The feasibility of a 4-day work week was additionally introduced up lately, and it was subsequently shot down after most Malaysian employers admitted they don’t seem to be prepared for that shift as a result of it might incur extra prices.
So, what is going to occur then? The reply is unclear, sadly. For some firms who’re struggling, the rise in minimal wage might really run them to the bottom. However what of the struggling staff then? How can they afford a roof over their heads whereas working in a world the place the costs for staple items like greens are growing?
The minimal wage hike will take impact beginning Could 1, 2022. For now, some sectors are given some flexibility, however solely time — and proof — will inform what’s in retailer for the employment market.
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Cowl picture sourced from Miera Zulyana / Yahoo! Information and Free Malaysia Right now (FMT).