Starting next month, Indian nationals working in Malaysia must be paid a minimum RM800 per month (excerpt):
New minimum wages for Indian labourers in Malaysia next month
PETALING JAYA: The Indian High Commission has formulated a new minimum wage for its citizens working here.
Effective Nov 1, the minimum monthly wage for Indian maid is RM1,400 and RM850 for plantation workers.
It also set the minimum wage of RM800 for restaurant, construction and general workers.
In a statement, the High Commission stated that it is mandatory for all Malaysian employers to fill up the Employment Contract according to the revised guideline.
While the IHC rules only apply to Indian nationals, this move essentially places a floor on wages for all workers in Malaysia. After all, if Indians must be paid a minimum of RM800, can Malaysians be paid any less in our own country? More to the point, being just above the official poverty line of RM720, there’s hardly any reason to put the forthcoming national minimum wage at anything less. As for the higher rates for the other categories, these will have less of an impact – the likely response would depend on the elasticity of the demand for labour in each of these areas. Insofar as there are alternative sources of foreign labour, at a guess I’d say it would reduce Malaysian demand for Indian labour (more for the maids than for plantation workers).
Posts
The other foreign workers may follow suit, persuaded further by a weakening ringgit.
ReplyDeleteThen we will see the achievement of a high-income economy but with the first bite of the apple by the foreign workers.
It remains to ask how long such an economy will last.
hishamh,
sigh.
I find it kind of odd at foreign country can impose minimum wage in Malaysia.
ReplyDeleteDo these workers require permission from their government to work in a foreign country?
Given India's "License Raj", I wouldn't be surprised. But on a more practical front, how I think IHC can enforce this is via the agents who source the labour from India on behalf of local employers.
ReplyDeleteEven Malaysian workforce are lowly paid in their own country.I am surprised IHC demanding high salary for their maid.They are controlling the freedom and wish of their people by imposing restrictions.
ReplyDeleteMALAYSIAN GOVERMENT MUST COUNTER REACT TO SAVE GUARDING THE INTEREST OWN PEOPLE.STOP SOURCING LABOURS FROM INDIA AND OTHER COUNTRIES IMPOSING SUCH RULES..!!!!!!
ReplyDelete