MEF mulls suing govt over minimum wage

MEF mulls suing govt over minimum wage

Its executive director Shamsuddin Bardan says according to the law, the rates can only be revised in 2021.

Putrajaya announced in Budget 2019 that the minimum wage has been set at RM1,100. (Bernama pic)
PETALING JAYA:
The Malaysian Employers Federation (MEF) is mulling legal action against Putrajaya for not following the law in revising the minimum wage to RM1,100.

Its executive director Shamsuddin Bardan said by revising the rate, the government had turned its back on the National Wage Consultative Council.

The minimum wage was initially fixed and gazetted at RM1,050.

“Once the minimum wage is gazetted, the government sets the rate for two years.

“Any review of the rate can only be done on Jan 1, 2021,” he told FMT.

Shamsuddin was asked to comment on Human Resources Minister M Kulasegaran defence of the decision to increase the minimum wage next year to RM1,100, adding that it did not go against the National Wage Consultative Council Act 2012.

Kulasegaran also said the government had consulted all parties and stakeholders about the minimum wage proposal before making any decision.

The Cabinet, he added, could also review the amount.

The MEF had prior to this voiced their unhappiness with the minimum wage proposal announced by Finance Minister Lim Guan Eng during the tabling of Budget 2019 last week.

Putrajaya had announced last month that a standardised minimum wage of RM1,050 be implemented nationwide from January 2019.

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