Will SMEs get wage hike deferment for RM1,500 minimum wage?

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Government Considering Deferment for SMEs and Micro Businesses on RM1,500 Minimum Wage

The government is reportedly considering allowing certain micro businesses and small and medium enterprises (SMEs) to defer the implementation of the new RM1,500 minimum wage. Details regarding the eligibility criteria and specific provisions for this deferment are still under discussion and are expected to be announced after the new minimum wage takes effect on May 1.
Deferment Eligibility Criteria Under Discussion

Deputy Human Resources Minister Datuk Awang Hashim indicated that the government is still deliberating on the specific conditions that will determine which SMEs and micro businesses qualify for wage deferment. These criteria, including the number of employees a business must have to be eligible, will be finalised and announced following the initial implementation of the RM1,500 minimum wage.
New Minimum Wage Implementation Date

The revised minimum wage, set at RM1,500 per month, is scheduled to be implemented nationwide starting May 1. This marks a significant increase from the current minimum wage of RM1,200, which was established in January 2020.
Business Sector Reactions to Minimum Wage Hike

Organisations representing employers, such as the Malaysian Employers Federation and the Federation of Malaysian Manufacturers, have voiced concerns regarding the impending minimum wage increase. They cited escalating operational costs and the potential impact on business recovery post-Covid-19 pandemic, with some expressing fears of potential business closures.
Workers' Unions Welcome Minimum Wage Adjustment

In contrast to employer groups, various workers' unions have expressed approval of the government's decision to raise the minimum wage. They view the RM1,500 minimum wage as a welcome development that will provide much-needed support to workers during challenging economic times.

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Will SMEs get wage hike deferment for RM1,500 minimum wage?

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