Only micro-entrepreneurs exempted from minimum wage implementation, says minister

TheEdge Sat, May 14, 2022 06:32pm - 1 week View Original


TANJONG KARANG (May 14): Only microenterprises and micro-entrepreneurs are exempted from implementing the Minimum Wages Order (MWO) 2022 until year end, according to Entrepreneur Development and Cooperatives Minister Tan Sri Noh Omar.

He said the MWO 2022 exemption was decided by the Cabinet, and while the term used is “micro, small and medium enterprises (MSMEs)”, it actually refers to micro-entrepreneurs.

“This means any entrepreneur or firm with an annual sales turnover of below RM300,000 and employing no more than five [full-time] workers,” the Tanjong Karang Member of Parliament said after officiating at the SK Sungai Burong Parent-Teacher Association general meeting here on Saturday (May 14).

Nevertheless, Noh said his ministry strongly encourages every micro-entrepreneur to implement the MWO 2022 in accordance with its enforcement effective May 1, 2022.

“If any micro-entrepreneur can afford to pay based on the minimum wage, they are strongly encouraged to do so. We don’t want [to force] if the entrepreneurs cannot afford it.

“If micro-entrepreneurs are just recovering and we force them to pay the minimum wage of RM1,500, I am concerned that they will feel pressured,” he added.

On Thursday, Deputy Human Resources Minister Datuk Awang Hashim said employers in the MSME group are exempted from the implementation of the MWO 2022 until year end.

However, he said, employers involved in professional fields such as lawyers and doctors would still have to follow the stipulated minimum salary of RM1,500 for each employee regardless of how many workers they have.

On April 27, the government gazetted the implementation of the minimum wage of RM1,500, which took effect on May 1, for employers who employ five or more employees as well as employers who carry out a professional activity classified under the Malaysia Standard Classification of Occupations 2020.

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