Minimum Wage for SMEs

Kindly be informed that the National Wages Consultative Council (NWCC) has announced that the implementation of minimum wages for foreign workers working in small and medium enterprises (SMEs) will not come into effect until 31 December 2013. This ruling is only applicable to foreign workers and not Malaysian workers therefore all Malaysian workers will be entitled to their minimum wage from 1st January 2013 or on any other date approved by the NWCC.

The NWCC further added that only employers who are paying the minimum wage will be allowed to make deductions on foreign worker’s levy and accommodation cost. The permitted levy deduction will be based on the actual levy fee while a maximum of RM50 per month can be deducted for the accommodation a foreign worker. Employers who wish to deduct more than RM50 per month for the accommodation of a foreign worker may apply separately to the NWCC for further consideration.

All other employers, apart from SMEs who are currently facing difficulties in the implementation of the Minimum Wages Order 2012 may also write to the NWCC for deferment by 30th June 2013.