Business

Minimum wage exemption only for micro-entrepreneurs: minister

This despite Order referring to ‘micro, small, medium enterprises’ as exceptions

Updated 4 years ago · Published on 14 May 2022 5:46PM

Minimum wage exemption only for micro-entrepreneurs: minister
Entrepreneur Development and Cooperative Minister Tan Sri Noh Omar encourages any micro-entrepreneurs to implement the Minimum Wage Order 2022 if they can afford it, despite the exemption applying to such enterprises. – Bernama pic, May 14, 2022

TG KARANG – Only microenterprises and micro-entrepreneurs are exempted from implementing the Minimum Wages Order (MWO) 2022 until the year-end, according to Entrepreneur Development and Cooperative Minister Tan Sri Noh Omar.

He said the MWO 2022 exemption was decided by the cabinet, and while the term used is “micro, small and medium enterprises (MSMEs)”, it actually refers solely to micro-entrepreneurs.

“This means any entrepreneur or firm with an annual sales turnover of below RM300,000 and employing no more than five (full-time) workers,” the Tg Karang MP said after officiating the SK Sg Burong Parent-Teacher Association general meeting here today.

Nevertheless, Noh said, his ministry strongly encourages all micro-entrepreneurs to implement the MWO 2022 in accordance with its enforcement effective May 1.

“If any micro-entrepreneur can afford to pay based on the minimum wage, they are strongly encouraged to do so. We don’t want (to force) if the entrepreneurs cannot afford it.

“If micro entrepreneurs are just recovering and we force them to pay the minimum wage of RM1,500, I am concerned that they will feel pressured,” he added.

On Thursday, Deputy Human Resources Minister Datuk Awang Hashim said employers in the MSME group have been exempted from the implementation of MWO 2022 until the end of the year.

However, he said, employers involved in professional fields such as lawyers and doctors would still have to follow the stipulated minimum salary of RM1,500 for each employee, regardless of how many workers they have.

On April 27, the government gazetted the implementation of the minimum wage of RM1,500, which took effect on May 1, for employers who employ five or more employees as well as employers who carry out a professional activity classified under the Malaysia Standard Classification of Occupations 2020. – Bernama, May 14, 2022

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