Business

Saravanan agrees RM1,500 minimum wage insufficient, but no plan to revise

Unless economy improves, minister says RM1,500 figure is final for now

Updated 3 years ago · Published on 25 Jul 2022 1:53PM

Saravanan agrees RM1,500 minimum wage insufficient, but no plan to revise
Datuk Seri M. Saravanan mentions that no employers have been charged yet for not adhering to the Minimum Wage Act 2022 as salaries affected by the act were paid out early June. – The Vibes, July 25, 2022

by Amar Shah Mohsen

KUALA LUMPUR – Human Resources Minister Datuk Seri M. Saravanan agrees that the current minimum wage of RM1,500 is insufficient for many households amid the rising cost of living. 

However, he said the government has no intention of revising the figure at the moment, unless the economy improves, among other factors that will be taken into consideration. 

“We have to look at the bigger picture, in terms of national economic growth and what not, only then are we able to make a decision. 

“But at this point in time, our final decision is for the minimum wage to be at RM1,500,” he told the Dewan Rakyat today. 

Saravanan was responding to a question from Steven Choong Shiau Yoon (Tebrau-PBM) about whether he agrees that the current RM1,500 minimum wage is not enough to support low-income households, and if the government has any plan to increase the wage further. 

On March 19, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the minimum wage would be increased from RM1,200 to RM1,500 beginning May this year.

Exemption is only given to employers with less than five employees, with the implementation to take effect on January 1, 2023. 

Asked by Datuk Seri Mujahid Yusof Rawa (Parit Buntar-PH) if the government has any intention of topping up the remaining RM300 per worker for small businesses – to ensure all Malaysians enjoy the new minimum wage – Saravanan said the matter will be reviewed if necessary. 

Separately, the minister said since the new Minimum Wages Order 2022 came into effect, a total of 157 complaints have been lodged to the Peninsular Malaysia Labour Department by workers over supposed failure to adhere to the new minimum wage. 

Following an investigation, Saravanan said 118 of them have been found guilty of blatantly violating the order and have been issued warnings and advice. 

However, he added that no employer has yet to be charged in court for infringement. 

“This is because the new minimum wage only came into force on May 1, while salaries were paid out starting early June. As of now, we are not yet able to obtain the statistics on employers who violated the order.”

Saravanan said the Labour Department would conduct constant statutory inspections and spot checks on employers to ensure the new minimum wage is implemented. – The Vibes, July 25, 2022

Related News

Malaysia / 1y

New RM1,700 minimum wage takes effect today

Malaysia / 1y

Minimum Wage to increase to RM1,700 starting February 2025

Malaysia / 1y

Minimum wage structure must be introduced with gradual adjustments, says MCA

Malaysia / 1y

Not all sectors need to raise salaries, economists say

Malaysia / 2y

No contest for top 2 party posts, says MIC

Malaysia / 2y

We will provide funds, solutions to ensure proper wage raise: Anwar

Spotlight

Business

Tycoon Vincent Tan trims BCorp stake further in RM115m share sale

Malaysia

UMNO’s solo gamble in Johor: A show of strength or risky miscalculation?

By The Vibes Says

Malaysia

Nik Aziz’s grandson allegedly slapped by senator: Father ready to take case to court

Malaysia

Lorry driver jailed a day, fined for making obscene gestures, dangerous driving (video)

Malaysia

PKR leader defends MyKhas access suspension for PJ, Subang MPs, cites ‘political choices’

Opinion

Social media set to dominate Johor polls as election kingmaker

Malaysia

Man charged in Butterworth parang attack case that left victim fearing permanent disability

Malaysia

Teen mothers must return to school, says Fadhlina as education remains priority

Malaysia

Penang water tariffs to increase from July 1 after year-long deferment

You may be interested

Business

Tengku Zafrul defends DC investments, says economic value goes far beyond job creation

Business

SpaceX targets historic US$75 billion IPO in record-breaking market debut plan

Business

Tycoon Vincent Tan trims BCorp stake further in RM115m share sale

Business

Ringgit gains as US trade policy concerns offset strong American economic data

Business

SC tightens oversight of investment-linked trust structures, requires licensing beyond incidental activity

Business

Time for banks to step up and do their part, stresses former finance minister

By Ian McIntyre

Business

Private capital set to power AI data centre boom as global tech capex forecast raised to US$5.3 trillion

Business

Ringgit eases against US dollar as strong American data and Gulf tensions boost greenback