In reference to the announcement on Minimum Wage implementation made by YAB Prime Minister on April 30, 2012, FMM was made to understand that the Ministry of Human Resources will form a Committee soon to ensure a standardized implementation of the minimum wage including to determine the fixed allowances that can be absorbed into the calculation of minimum wage.

To recapitulate, the announcement highlights included the following:

• a flexible mechanism to allow employers who could not implement the minimum wage policy (within the given time) to apply for an extension is being prepared;
• a mechanism to allow employers to take into account the allowances or fixed cash payment in the calculation of the minimum wage is being established.

As of to date, the Minimum Wage Order has yet to be gazetted. FMM will continue to keep members updated.

FMM’s views on minimum wage is available from this link.
https://www.fmm.org.my/Press_Releases-@-Minimum_Wage_Should_Consider_Geographical_Differences_in_Living_Costs_(March_5,_2012).aspx