MTUC says companies cutting allowances after minimum wage bump


Alfian Z.M. Tahir

The Malaysian Trades Union Congress is urging any employee who has had allowances deducted to offset the minimum wage increase to lodge a report with union or the nearest labour office. – The Malaysian Insight file pic, May 27, 2022.

THE Malaysian Trades Union Congress (MTUC) has received numerous complaints from workers, who say their companies have cut their allowances after the government’s announcement on the minimum wage.

In a statement released today, MTUC secretary-general Kamarul Bahrin Mansor urged anyone who had not been paid allowances to report it to the MTUC or the nearest labour office.

“The MTUC has received complaints from workers that companies have begun cutting their allowances, eg transport and food,” Kamarul said.

“We would like to remind companies that cutting the allowances is an act of betrayal to the government’s effort to empower the B40 group.

“Affected workers must immediately lodge a report to the MTUC or the labour office so that action can be taken against the company.”

Prime Minister Ismail Sabri Yaakob had announced that the minimum wage would be raised from RM1,200 to RM1,500, effective May 1.

However, he added small and micro businesses were permitted to delay raising wages if they would struggle to make the increased payment.

Kamarul then said the MTUC would set up a special committee to prepare and review a report, act upon and channel information about the new minimum wage.

“Every report must be addressed and the labour office must not wait for a complaint in order to act.

“The labour office must be proactive to ensure that the minimum wage is implemented,” Kamarul said.

“Lack of manpower must not be a reason for the labour office not to act. A slow response will only show that the minimum wage policy is nothing but a political campaign.”

The Minimum Wages Order issued by Human Resources Minister M. Saravanan was published in the Federal Government Gazette and uploaded on the official website of the Attorney-General’s Chambers.

According to the gazette, the legal minimum for monthly wages has been raised from RM1,200 to RM1,500. – May 27, 2022.



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