Malaysia

Many Sabah employers still not complying with minimum wage: authorities

Other violations include indiscriminate pay cuts, not issuing offer letters, payslips, says state Labour Dept

Updated 3 years ago · Published on 08 Mar 2023 3:03PM

Many Sabah employers still not complying with minimum wage: authorities
Sabah Labour Department director Wan Zulkifli Wan Setapa says they had instructed the 39 employers to pay up what they owe to their workers, which, according to him, has exceeded RM200,000 based on preliminary calculations including overtime. – Pixabay pic, March 8, 2023

by Jason Santos

KOTA KINABALU – Many Sabah employers are still selling their workers short when it comes to their welfare, said Sabah Labour Department director Wan Zulkifli Wan Setapa.

A recent check on 60 employers around here, he said, revealed that the most common offences are their failure to comply with the Minimum Wage Order 2022 and their tendency to impose indiscriminate pay cuts.

“We have found there are still employers who are not paying their workers’ salary according to the RM1,500 minimum wage. 

“The minimum wage order came into force in May last year and the new rate has been set at RM1,500 a month, or RM57.70 a day or RM7.90 an hour.

“The second most common offence, we found employers are still cutting the salaries of their workers without the approval of the Labour Department director’s office.

“This is an offence under the Sabah Labour Ordinance,” Wan Zulkifli told reporters during a multi-agency joint raid at several workplaces around the state capital today.

The joint operation involved all four agencies under the Human Resources Ministry, namely the state Labour Department, Social Security Organisation, Occupational Safety and Health Department, and HRD Corp.

Wan Zulkifli said they had instructed the 39 employers to pay up what they owe to their workers, which, according to him, has exceeded RM200,000 based on preliminary calculations including overtime.

He said the rate for overtime would be in the tune of over RM10 per hour.

Although the joint operation was aimed at raising the awareness of the employers, Wan Zulkifli said they had decided to take a diplomatic and developmental approach against them, instead of taking punitive measures.

“Several investigation papers had been opened. But we are giving them a 14-day grace period to adhere to the laws. 

“We will be following up on this. If they still do not implement our recommendations, we will be taking action,” said Wan Zulkifli, adding that the common defence given was that they (the employers) were not aware of the regulations.

Towards this end, Wan Zulkifli said the agencies have established 15 teams to carry out continuous inspections on employers statewide on a daily basis.

Other common offences, he said, include the failure of employers to provide an offer letter to their workers and issue payslips.

He said adherence to the laws involving workers are crucial towards the development of Sabah and achieving the high-income state status. – The Vibes, March 8, 2023

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