Issues on Minimum Wage

1.
National Wages Consultative Council (NWCC) has issued a Press Statement on 19th March 2013, stating that Government has decided to defer the implementation of minimum wage for foreign workers of SMEs. Amongst the details are:-
     
 
a)
Local employees (citizens) MUST be paid minimum wage as per the Order;
 
 
 
 
b)
Employers in SMEs are given blanket deferment of the implementation of the minimum wage for their foreign workers until 31st Dec 2013;
 
 
 
 
c)
Employers who have been given deferment are not allowed to make deductions from the foreign workers wages for levy, cost of accommodation or other allowances;
 
 
 
 
d)
Employers who are implementing minimum wages are given a blanket approval for deductions of levy and cost of accommodation. The amount of levy to be deducted is the actual amount on a prorated monthly basis and the amount of accommodation shall not exceed RM50 per month per foreign worker. Both the deductions above need to be notified to the nearest Labour Department via email or letter;
 
 
 
 
e)
However, in special circumstances, based on individual merits, the Labour Department may consider applications for cost of accommodation exceeding RM50 a month for each foreign worker;
 
 
 
 
f)
Employers, other than SMEs, who face difficulties in implementing minimum wages may apply for deferment on individual basis to the Secretariat of NWCC before 30th June 2013 by submitting the following supporting documents:-
 
 
 
   
i. Registration with Company Commission of Malaysia (SSM);
 
 
 
   
ii. Audited account for 3 years; and
 
 
 
   
iii. Number of local and foreign workers employed, as well as their salary report.
 
 
 
 
Please refer to Annex A for NWCC’s Statement.
 
 
 
2.
ACCCIM has issued a Press Statement on 20th Mar 2013 to welcome the decision of Government to defer the minimum wage for foreign workers of SMEs, and to urge all relevant authorities and agencies to give full cooperation and support to industries and explain to the foreign workers on the latest changes to the policy if necessary, so as to avoid any misunderstanding by the foreign workers.

ACCCIM has also written to the Ministry of Human Resources, requesting to be appointed as a member of the National Wages Consultative Council (NWCC) and relevant technical committee. ACCCIM hopes that the NWCC can accommodate adequate representatives from the business community to iron out problems and issues to ensure that the Minimum Wage policy can be fully implemented on 1st Jan 2014.

Please refer to Annex B for ACCCIM Press Statement dated 20th Mar 2013.
 
 
 
3.
ACCCIM was invited to a luncheon meeting with Minister of Human Resources on 21st March 2013. ACCCIM was represented by Dato’ Lim Kok Cheong (President) and Datuk Ter Leong Yap (Deputy President) while YB Datuk Seri Dr. S. Subramaniam was accompanied by Dato’ Seri Zainal Rahim bin Seman, Secretary General of MOHR.

Matters discussed include various issues on the implementation of Minimum Wage, and ACCCIM sought clarification from the Minister on various details that caused confusion due to differing announcements made by relevant authorities. ACCCIM requested the Minister to appoint ACCCIM as member of NWCC to present views and comments of the business community, and also urged NWCC to consider Productivity Linked Wage System (PLWS) when they review the quantum of Minimum Wage every two years to ensure the sustainable development of industries.

Both the Minister and Secretary General of MOHR agreed to conduct a briefing with ACCCIM to explain on the details of Minimum Wage and various HR issues including Labour Act and Employment Act. ACCCIM will organise the briefing as soon as possible.

Please refer to Annex C for ACCCIM Press Statement dated 22nd Mar 2013.

Thank you.