All small- and medium-sized enterprises (SMEs), including those with five workers or fewer, officially begin to implement the RM1,500 minimum wage policy today, but this is insufficient for SMEs to cope with the current cost of living.
SME Association of Malaysia president Ding Hong Sing said the policy was nothing new as most microbusinesses had already adhered to it despite a six-month postponement given for these companies.
He said most SMEs here needed to pay more than the minimum wage to attract workers.
"Microbusinesses have been adopting the RM1,500 minimum wage for a long time. So, this is nothing new.
"Microbusinesses in Kuala Lumpur have already been paying more than the RM1,500 minimum wage.
"Almost 90 per cent of businesses here have been paying their workers a monthly salary of almost RM2,300.
"Otherwise, no one would want to work at such places," he told the New Straits Times.
Since companies and workers continued to face challenges, Ding urged the government to aid SMEs because this could give the economy a boost.
Today sees the enforcement of the RM1,500 minimum wage for businesses with fewer than five employees.
An earlier deadline of Jan 1 was set by the government at the end of last year, but employers of such businesses were allowed to defer its implementation for up to six months.
The ruling applies to all sectors except domestic services and apprenticeships.
The implementation of the new minimum wage was approved by the government on March 19, 2022, and was gazetted in the Federal Government Gazette issued by the Attorney-General's Chambers on April 27 of the same year.
The Minimum Wage Order 2022 was enforced on May 1, 2022, with a monthly wage rate of RM1,500 for employers who employ five or more workers.
For businesses with fewer than five employees, the government allowed a deferment of the implementation of the minimum wage until tomorrow.
Human Resources Minister
V. Sivakumar had reportedly stated previously that the government made this decision after factoring in the readiness of employers to enforce the new minimum wage for their employees.
The decision to defer the implementation was made earlier after the government took into account the views of stakeholders, who were expected to face economic and financial challenges in the coming year.
Khairil Mohd Azrin, a cafe owner in Shah Alam, Selangor, said the minimum wage did not correspond with the expenses incurred by city folk.
"In Shah Alam, even rent costs RM1,800 a month, and that's not counting groceries and commuting.
"So, a RM1,500 minimum wage is ridiculous here.
"I understand that by making it official, it means everyone is now obligated to implement it.
"But even shops in areas outside of Kuala Lumpur are already paying RM1,800 for a worker."
Khairil has four employees, and he pays each of them almost double the minimum wage.
He said RM1,500 was not a lot, but agreed that if employers were not compelled to pay the minimum wage, they would face difficulty getting workers.
Source: https://www.nst.com.my/news/nation/2023/07/925979/many-smes-already-paying-more-minimum-wage-retain-staff