Published: Sunday January 20, 2013 MYT 2:42:00 PM
Updated: Sunday January 20, 2013 MYT 2:57:41 PM
Subra: Minimum wage to avoid unnecessary hiring of foreigners
By DESIREE TRESA GASPER
JOHOR BARU: The minimum wage policy, which came into effect this year, is to avoid the unnecessary hiring of foreign workers, said Human Resources Minister Datuk Seri Dr S. Subramaniam
For example at petrol stations, he said, people have to accept the idea of self-service when filling up their cars.
Petrol dealers have implemented the minimum wage as of Jan 1, throwing some 50,000 foreigners out of work.
"The change that we are looking for will not happen overnight," Dr Subramaniam said adding that the minimum wage policy was also implemented to channel workers to other sectors which are in need of labour.
He said there were no provisions in the current law to allow companies to delay implementing the policy.
"Employers need to deal with the new policy but if they have problems, they can forward their concerns to us and we will try and help them," he said.
The minimum wage policy requires companies to pay a minimum wage of RM900 in the peninsula and RM800 in Sabah, Sarawak and Labuan.
Subramaniam said the ministry was also discussing with employers on issues relating to levy and allowances for housing and transportation of the foreign workers.
"Employers want the levy and allowances to be born by the workers. The issue is up to the Cabinet to decide on what action to be taken," he said on Sunday.