Minimum wages on the horizon

KUALA LUMPUR: The National Wages Consultative Council Bill 2011, which will pave the way for the implementation of minimum wages, was passed in the Dewan Rakyat yesterday.

Under the provisions, the council is to be established to conduct all studies related to minimum wages and make recommendations to the government regarding minimum wages according to sectors, types of employment and regions.


“In our effort to attain a developed and high-income country status in nine years, the fate of the working poor in the country must be well defended in line with the 1Malaysia spirit,” Human Resources Minister Datuk Dr S. Subramaniam said when winding up the debate on the bill.


He said he was frustrated by the attitude of several opposition members of parliament who chose to manipulate the bill for political mileage. During the four-hour debate on the bill, opposition MPs raised concerns that the bill was not employee-friendly, but Subramaniam, who is also the Segamat MP, denied this.

The National Wages Consultative Council Bill 2011 seeks to replace the Wages Council Act 1947.


It states that the council shall consist of a minimum of 23 people, with the chairman, deputy chairman and at least five other members to be appointed from those who are not public officers, employers or trade union members.


The council shall consult the public on rates of minimum wages, collect and analyse data and information, and conduct research on wages before making recommendations to the Human Resources Ministry.

The council can make recommendations, through the minister, on coverage, commencement and implementation of recommended minimum wage rates.


It is up to the government to agree with the recommendations or to ask the council to take another look. If the ministry agrees to the recommendations, it will make a minimum wage order, which is subject to a review by the council at least every two years.


The bill states that it shall not be construed as preventing employers and employees from agreeing to rates that are higher than the minimum wages as specified.

The bill also states that an employer who fails to pay his employees the basic wages as specified in the minimum wages order is liable to a fine of not more than RM10,000 for each employee.

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