![[UPDATED] RM1,500 min wage put on hold until July for firms with less than five workers: minister](https://media.thevibes.com/images/uploads/covers/_large/03082022_-_Orang_Ramai_People_Rakyat_Malaysia_consumers_labour_employment_generic-_ABDUL_RAZAK_LATIF_06.JPG)
KUALA LUMPUR – The implementation of the RM1,500 minimum wage has been suspended for companies with less than five employees until July 1 next year.
According to Human Resources Minister V. Sivakumar, this move is aimed at helping such companies adjust their cash flow and improve their financial standing.
“This decision was made after the government took into account the views of various stakeholders who are expecting economic and financial challenges in 2023,” he said in a statement.
The latest minimum wage increase, which took effect on May 1 this year, was previously postponed for those companies to January 1 next year.
However, the Human Resources Ministry said the suspension does not apply to employers with five or more employees, and employers involved in professional activities outlined in the Malaysia Standard Classification of Occupation (Masco).
They are to adhere to the minimum wage increase from May 1.
Previously, Malaysian Employers’ Federation president Datuk Syed Hussain Syed Husman said employers across the country are already bearing an additional cost of RM14 billion a year since May 1 when the minimum wage was increased from RM1,200 per month to RM1,500.
Some employers, he added, are still struggling to fully implement minimum wage requirements while some of them fail to comply because they are unable to.
“In general, employers try to implement the matter, but there are situations where some of them have to go out of business because they are unable to do so.” – The Vibes, December 27, 2022
