Minister Saravanan on the failure to comply with Malaysia's Minimum Wage Order

In June 2022, JTKSM received a total of 157 complaints related to the implementation of the minimum wage order.

Malaysia's Minister for Human Resources Datuk Seri M. Saravanan has recently addressed the issue of employers who do not comply with the Minimum Wage Order 2022, which came into effect 1 May 2022. 

Speaking in Parliament on Monday (25 July 2022), Minister Saravanan said no employer has been prosecuted for failure to comply with the order as of 30 June 2022 — this is because the May 2022 salary will only start to be received by employees at the beginning of June 2022.

For clarification, the postponement of the minimum wage of RM1,500 per month only applies to employers who employ less than five employees. This is to give employers of this category the opportunity to make appropriate preparations.

Through the Ministry of Human Resources, the Government of Malaysia has decided that no delay will be granted to any economic sector or type of job given, the assistance to employers through the COVID-19 aid package, such as the Wage Subsidy Programme.

To ensure that all employees benefit from the Minimum Wage Order, the Department of Labour of Peninsular Malaysia (JTKSM) conducts statutory inspections, or surprise inspections, on employers. As of 30 June 2022, 20,452 employers have been inspected, with a total of 3,049 workplaces inspected across the country in June alone, shared Minister Saravanan. 

Further, JTKSM also conducts investigations upon receiving a complaint from employees. In June 2022, JTKSM received a total of 157 complaints related to the implementation of the Minimum Wage Order. Upon investigation, 118 employers were found to not be complying with the Order.

Minister Saravanan added: "Advice is given to employers to comply. If they fail, legal action will be taken against them."

Similarly, Malaysia's Prime Datuk Seri Minister Ismail Sabri Yaakob also commented on the possible lack of compliance with the Minimum Wage Order while inaugurating the Malaysian Family Job Guarantee Career Expo on Monday. 

During the expo, the Minister shared that the government is now actively developing a talent pool that is skilled, productive, and with high potential. As such, he "is disappointed that the salary offered by the employer does not match the qualifications and work done by locals".

He further elaborated: "In that regard, I request that employers take this matter seriously because employees are the main pillar in any organisation; where they can 'make or break' a business." 

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