Selangor unveils RM1,500 minimum wage policy - Labour Law Blog

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Jan 4, 2012

Selangor unveils RM1,500 minimum wage policy


SHAH ALAM, Nov 9 — A RM1,500 minimum wage floor will be introduced at all Selangor-linked corporations, Mentri Besar Tan Sri Khalid Ibrahim announced while tabling the state Budget today.

He also said a half-month bonus or at least RM500 will be paid out to each of the state’s civil servants.

The Bandar Tun Razak MP said the minimum wage policy “will begin with state-owned companies with stable finances” such as the Selangor State Development Corporation (PKNS) and Selangor Agricultural Development Corporation (PKPS).

“A RM10 million fund will also be set aside for those (corporations) that are still financially unstable and unable to bear the cost of this policy,” he said.

In unveiling the state’s RM1.6 billion Budget for 2012, Khalid (picture) said the balanced budget was made possible due to a RM300 million infusion from the Mentri Besar Inc as well as dividends from other state-linked firms.

At a press conference later, Khalid explained that the RM10 million fund would go towards workers’ training to justify the increase in salary.

“Wages are paid because of productivity,” he explained, adding that workers may choose further training to enhance their skills.

“Because the company may not have the money or resources, we will pay (for the workers’ training),” he said, adding that the move would help deflect detractors who may call the move unjustified due to inadequate skill or capability.

“The state government will strive to increase productivity of the state and its companies so the implementation of minimum wage is justified,” he said.

However, Khalid stressed that the pay hike was also not a gift.

“We don’t want to give away money just like that; people have to earn their living,” he said.

“The earning of their living must be structured so that their productivity will support the rationale for giving them the income.”

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