KUALA LUMPUR: Workers retrenched following the implementation of the RM2,000 minimum wage next year may be eligible for up to six months of financial assistance under the Employment Insurance System (EIS), the Dewan Rakyat heard.
Economy Minister Akmal Nasrullah Mohd Nasir said affected workers covered by the scheme could claim benefits, including a job-search allowance, if employers resorted to retrenchments while adjusting to higher wage costs.
"If the adjustment to the minimum wage leads to company restructuring, including retrenchments, affected workers covered by the EIS are eligible to claim benefits, including a job-search allowance, for up to six months," he said in response to a question from Aminolhuda Hassan (PH-Sri Gading).
Akmal said the government had also exempted micro, small and medium enterprises (MSMEs) with annual sales revenue below RM50 million from the wage increase to give them room to adjust their business models.
He said the Labour Department would enforce compliance, with workers allowed to lodge complaints against employers who failed to meet the new wage requirement.
He said the government would develop a mechanism that considers job responsibilities, qualifications and productivity amid concerns that a higher minimum wage for graduates could discourage employers from hiring them.
He said wage increases must be accompanied by improvements in workers' skills, technology adoption and continuous training, as wage growth had not kept pace with productivity gains.
Akmal said the Progressive Wage Policy, which benefited nearly 51,000 workers across more than 4,000 employers, was also being reviewed to address structural problems contributing to stagnant wage growth.
The government aims to increase workers' compensation as a share of gross domestic product from 33.9 per cent to 40 per cent by 2030.
To contain price increases, he said the government would strengthen enforcement under the Price Control and Anti-Profiteering Act while expanding affordable sales programmes, including 30,000 Jualan Rahmah Madani programmes with an allocation of RM700 million and 5,000 Jualan Agro Madani programmes with RM50 million next year.
© New Straits Times Press (M) Bhd