Malaysian government sent circular notice to Office of Labour Affairs in Malaysia dated on 20 February 2013 to notify that the secretary of the National Wages Consultative Council (NWCC) has announced new minimum wage rate for SMEs as follows;
The Announcement of Minimum Wage 2012 indicated that the employer hiring more than 6 employees shall pay minimum wage of 900 ringgit for private sector in Peninsular Malaysia and 800 ringgit for Sabah, Sarawak and Labuan which came into effect on Jan 1. However, the employers SMEs unable to pay minimum wage rate as the announcement of minimum wage
- The employers who have not implemented the new minimum wage rate can apply the extension to the payment to NWCC. The decision would be subject to the conditions that these employers must hire foreign workers and are allowed to adapt foreign worker’s wage structure. For local workers, the employers shall pay minimum wage rate which shall come into effect since 1 January 2013. However, these SME employers would not be allowed to make any deductions on levy, accommodation and other allowances from the salaries of their foreign workers.
- Employers who had implemented the minimum wage policy but who have run into difficulties paying the wages could apply to the Government to be allowed to deduct the costs of levy and accommodation from the workers’ pay. However, employers in the plantation sector who have implemented the minimum wage policy cannot apply for an extension and neither can they deduct the cost of accommodation from the workers’ pay.
The implementation of the minimum wage policy remains at Jan 1, except for the employers whose appeal had been accepted by the Government.
Accordingly, the new workers working in Malaysia on 1 Jan onward and the old workers who must extend work permit might be deducted for a levy and accommodation if the employers required.
