Clinics, security firms among over 120 companies not paying RM1,500 minimum wage

More than 120 companies and employment agencies were found to have violated the minimum wage order of RM1,500 since it came into effect on May 1.  

According to a list issued by the Government Contract Workers Network (JPKK) and Parti Sosialis Malaysia (PSM), security companies are the worst offenders among the 127 businesses which also include clinics and cleaning companies. 

"These are all security companies given tenders by ministries," a PSM spokesman told MalaysiaNow on the sidelines of a press conference in Putrajaya today. 

The spokesman said many employees of such companies had been affected by their bosses' failure to pay them the minimum wage, adding that for schools alone, at least four security guards are normally assigned. 

"One company takes care of one school," he said. 

He said the most common excuse given was that they were old contractors whose tenders were issued before the minimum wage was gazetted. 

"They say if workers want to be paid the minimum wage of RM1,500, they will have to wait for a new contractor to enter the picture." 

The implementation of the RM1,500 minimum wage was gazetted on April 27 and posted on the official website of the Attorney-General's Office.

It states that employees must be paid a minimum wage of RM1,500 or based on the number of days worked in a week. 

For example, employees should be paid RM57.69 a day if they work for six days in a week, RM69.23 a day if they work five days a week, and RM86.54 a day for four days, with payment per hour equivalent to RM7.21.

For employees who are not given a basic salary but paid wages based on work, tonnage, assignments, travel or commission, the monthly salary rate to be paid must not be less than RM1,500, either. 

However, the minimum wage rate of RM1,500 for employers who have fewer than five workers will only come into effect next January.

The PSM spokesman said there had been a meeting between ministry representatives, JPKK and PSM after the submission of the list. 

"Everything went smoothly, and the workers' representatives have also met with the ministry's representatives for discussions and suggestions," he said.