M’asia sets minimum wage at RM 800-900
Year of Publication: 1 May 2012 | The Kathmandu Post
Publication Type: NEWS
Published by: CESLAM
The Malaysian government has announced a minimum monthly salary of 800-900 ringgit for workers, depending on the states they work.
On the occasion of the May Day on Tuesday, Malaysia’s Prime Minister Datuk Seri Mohd Najib Tun Razak announced a monthly basic salary of 900 ringgit for workers in Peninsular Malaysia and 800 ringgit for those working in Sarawak, Sabah and Labuan regions.
After the implementation of the new salary structure, Nepali migrant workers in Malaysia are likely to draw around Rs 24,000 per month from the current Rs 15,000 (540 ringgit).
The new wage structure covers workers in all sectors of the economy, except for domestic help, gardener and similar other employment categories. Malaysia does not hire Nepali workers as maid and gardener.
Although, some employers criticized the new salary provision, the Malaysian government assured strict implementation, directing employers to adopt the new provision within six months. However, companies having less than five workers are not required to abide by the provision.
Malaysian Human Resource Minister Datuk Seri S Subramaniam asked the private sector to implement the minimum wage strictly.
“The minimum wage has not been set by politicians, but by the Technical Committee of the National Wage Advisory Council and the World Bank which studied the matter in depth before the rate was accepted by the councils representing employers and workers,” the national news agency BERNAMA quoted the minister as saying.
Malaysia is one of the major destinations for the Nepali migrant workers. An estimated 4,50,000 Nepalis are working in Malaysia currently.
General Secretary of the Nepal Association of Foreign Employment Agencies Kumud Khanal said the Malaysian government’s move could be a milestone in the welfare of migrant workers.
However, outsourcing agencies are not yet confirmed whether the wage hike covers Nepali migrant workers.
“If hidden costs like health insurance and levy are included in the increase, salary of Nepali migrant workers is likely to be around 750 ringgit,” said Khanal.
Outsourcing agencies expect that the move will improve migrant workers’ condition and lessen complaints. “On the other hand, hiring may decrease as companies are likely to focus more on quality of workers than numbers,” said Khanal, terming the Malaysian government’s move ‘tactical’ and ‘aimed at encouraging local workers and discouraging foreign migrants’.
Director General of the Department of Foreign Employment Purna Chandra Bhattarai welcomed the move, saying it would be of a great relief to workers. “The main issue is whether they strictly implement it,” Bhattarai.
Published on: 1 May 2012 | The Kathmandu Post
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